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Cardano’s core development team, Input Output Global (IOG), has secured approval for a 96 million ADA treasury grant—equivalent to $71 million—to fund a sweeping 12-month upgrade plan focused on scalability, interoperability, and improving the developer experience.
The proposal passed with 74% of the vote, marking the first time Cardano’s community has directly authorized core development funding through its on-chain governance system. The funds will be released in stages, tied to milestones and monitored by Intersect, a member-based Cardano organization, which will serve as an independent administrator.
Upgrade Plan Focuses on Scalability and Developer Experience
IOG’s roadmap includes several high-impact initiatives. Key among them is Hydra, a protocol for fast, low-cost transactions designed to reduce the network’s current average transaction time of 20 seconds and cost of 0.34 ADA. Another highlight is Project Acropolis, a modular redesign of Cardano’s core node architecture aimed at streamlining the onboarding of new developers and enhancing flexibility.
Additional upgrades will target reduced RAM usage and lower operational costs for stake pool operators. These technical optimizations aim to lay the groundwork for more advanced smart contracts and seamless interoperability with other blockchains.
Accountability and Transparency Issues
Despite approval, the proposal sparked concerns among Cardano users about cost justification, transparency, and delivery accountability. Critics argued the funding should be broken into smaller, goal-specific budgets with separate community votes. Some also supported an alternate proposal from the Cardano Technical Steering Committee (TSC), which was not endorsed by Intersect.
To address these concerns, IOG has committed to publishing monthly progress updates, engineering timesheets, and quarterly budget breakdowns. A dedicated oversight committee and smart contract-enforced milestones aim to enforce transparency and accountability.
Cardano Follows Industry-Wide Upgrade Momentum
Cardano’s push to evolve comes amid broader blockchain infrastructure upgrades. Solana recently increased its compute capacity by 20%, while Ethereum implemented its Pectra hard fork and raised its gas limit—highlighting the industry’s drive toward more scalable and efficient ecosystems.
Cardano’s $71 million funding approval is a landmark moment in its decentralized governance, signaling both trust and scrutiny from its community. As IOG embarks on this pivotal development cycle, all eyes will be on whether its promises of faster transactions, better tooling, and lower costs materialize under this unprecedented level of oversight.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
