Cardano’s core development team, Input Output Global (IOG), has successfully secured a $71 million budget to fund a year-long series of network upgrades. This decision, finalized after an extensive governance vote, is expected to enhance Cardano’s infrastructure significantly. The vote saw 74% approval, green-lighting the release of 96 million ADA, which accounts for about 13% of the protocol’s treasury, to IOG.
Funding and Oversight: A New Era for Cardano
The approved funds are earmarked for a series of strategic upgrades, with payments to be released based on the achievement of specific milestones. Oversight will be provided by Intersect, a governance body driven by its members, alongside smart contracts and an independent committee. This layered oversight aims to address concerns around transparency and accountability that were raised during the voting process.
Among the key projects to watch are Hydra, a layer-2 scaling solution designed to make transactions faster and cheaper, and Project Acropolis, which seeks to revamp the Cardano node for improved modularity and developer onboarding. These initiatives aren’t just technical exercises—they’re about laying the groundwork for increased developer activity and potentially new use cases on the Cardano network.
According to blockchain analyst Maria Stevens, “This funding marks a pivotal moment for Cardano, giving it the financial muscle to compete more aggressively with rival chains. The focus on scalability and enhanced developer tools could make Cardano a more attractive platform for new projects.”
Challenges and Controversies: Navigating Opposition
Despite the positive outcome, the proposal was not without its critics. Some community members voiced concerns over the lack of detailed breakdowns of how the funds would be allocated, arguing that the proposal should have been divided into smaller, more manageable parts for voting. These criticisms highlight ongoing debates within the Cardano community about how best to manage its substantial treasury.
Interestingly, a rival proposal from Cardano’s Technical Steering Committee was rejected, even though it initially gained some traction. This outcome reflects the complex dynamics of governance within decentralized networks, where competing visions and priorities must be reconciled. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
While Cardano moves forward with these ambitious plans, other blockchain networks aren’t standing still. Solana recently boosted its compute unit ceiling by 20%, and Ethereum’s Pectra upgrade has increased its blob limit and staking caps. Another significant fork, Fusaka, is set for late 2025, suggesting a competitive landscape where innovation is key. As explored in our recent coverage of Nasdaq firms betting on Binance Coin, strategic treasury decisions are becoming increasingly pivotal in the crypto space.
Looking Ahead: Implications for ADA and the Crypto Ecosystem
The implications of these developments for ADA, Cardano’s native token, are potentially significant. By enhancing scalability and reducing operational costs for validators, these upgrades could drive increased demand for ADA as more projects opt to build on the Cardano network. However, the success of these initiatives will depend heavily on execution and community buy-in.
Crypto market strategist Jake Thompson notes, “While these are promising developments, the real test will be in how effectively IOG can deliver on its promises. The crypto space is littered with projects that failed to live up to their potential.”
As Cardano sets out on this ambitious path, the broader cryptocurrency market will be watching closely. The outcome of these efforts could influence not just the future of Cardano, but also its position in the increasingly crowded blockchain sector.
In the coming months, stakeholders will be keenly observing how these upgrades unfold and what they mean for Cardano’s long-term prospects. With the blockchain sphere evolving rapidly, the pressure is on for Cardano to meet its targets and prove its resilience in an ever-competitive environment.
Source
This article is based on: Cardano Community Approves $70M Core Dev Budget, Boosting ADA Prospects
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
