Cardano News Today: Cardano Rejects Treasury Funds for Listings, Prioritizes Infrastructure Over Ecosystem Growth

The Cardano community has clarified its stance on the use of treasury funds following a proposal by the SNEK project, a prominent meme coin in the Cardano ecosystem, to withdraw 5 million ADA from the Cardano Treasury to cover exchange listing fees. Cardano founder Charles Hoskinson explicitly rejected the proposal, stating that the Treasury is reserved for public infrastructure development and not for commercial exchange listings, even for projects with significant community support .

The SNEK team had sought to use Treasury funds to secure a listing on a Tier 1 exchange, a move that could cost between $100,000 and $500,000. Hoskinson emphasized that all projects, including Midnight-a privacy-focused sidechain under Cardano-must self-fund their listings. His response underscored a broader principle: the Treasury should prioritize network upgrades and protocol improvements over individual project promotion .

The Cardano community recently approved funding for core development initiatives led by Input Output Engineering (IOE), including Ouroboros Leios (consensus mechanism upgrades), Hydra (layer-2 scaling), and Project Acropolis (governance enhancements). These allocations reflect a preference for decentralized governance and public infrastructure, with Ricky Rand of IOE noting that the approval validates the effectiveness of Cardano's self-governance model .

Hoskinson proposed an alternative funding mechanism for projects: Treasury bonds. Under this model, projects could borrow ADA with the obligation to repay the loan once revenue is generated. This approach aims to balance innovation support with fiscal responsibility, avoiding the misuse of community funds for commercial exposure .

The decision impacts SNEK and Midnight, both of which now face the challenge of independently securing listing fees. SNEK, despite its popularity, must navigate traditional fundraising channels, while Midnight-a project aligned with Hoskinson's personal work-will also need to self-finance its exchange listing. Community feedback highlights the tension between fostering ecosystem growth and maintaining fiscal discipline .

The rejection of SNEK's proposal aligns with previous Cardano governance decisions, such as the rejection of a plan to convert part of the Treasury into stablecoins. These decisions reinforce the community's commitment to decentralization and transparency. Meanwhile, anticipation grows for projects like Midnight's Glacier Drop airdrop and the Rare Evo conference, which may provide further clarity on Cardano's development roadmap .

Sources:

[1] The Currency Analytics (https://thecurrencyanalytics.com/altcoins/cardano-community-divided-as-hoskinson-denies-treasury-support-for-snek-midnight-listings-188864)

[2] Cryptopolitan (https://www.cryptopolitan.com/cardano-treasury-wont-cover-listing-fees/)

[3] Coingape (https://coingape.com/charles-hoskinson-says-cardano-will-not-pay-listing-fees-for-midnight-or-snek/)

[4] Gate (https://www.gate.com/news/detail/12773682)