Cardano reduces funding request by 50%

April 29, 2026

Input Output, the company responsible for the Cardano blockchain, has decided to reduce its annual funding request to the network’s funding treasury by nearly 50%. This adjustment comes as part of a broader strategy to speed up decentralization efforts while finalizing a significant effort to boost the platform’s scalability over several years.

In unveiling its 2026 funding proposal, the organization presented ten initiatives totaling $46.8 million, a stark decrease from the $97.5 million requested the previous year. The proposals will be subjected to a vote by delegate representatives within Intersect, Cardano’s governance body, with voting open until May 24.

This reduction in funding signals a move towards financial independence and a decreased reliance on centralized development in the long run. It also signifies a critical juncture for the blockchain as years of academic research start to transition into real-world upgrades.

Jeff Watson, head of technology at Input Output’s Cardano business unit, highlighted the importance of these proposals, noting that they aim to enhance utility and user experience while setting the stage for the network’s next growth phase.

The key aspects of the 2026 program revolve around advancing decentralization in development and making a significant stride in scalability. These initiatives aim to address historical criticisms of Cardano lagging behind other networks in terms of transaction throughput and developer adoption, despite its focus on formal methodologies and peer-reviewed research.

A cornerstone of the plan is the Leios consensus upgrade, which aims to boost base-layer throughput by up to 65 times, potentially reaching over 1,000 transactions per second. A testnet is scheduled for June, and the mainnet rollout is targeted for the year’s end. Additionally, supplemental scaling solutions like Hydra and the Midgard layer 2 framework aim to slash transaction costs to fractions of a cent while providing almost instantaneous settlement.

In addition to performance enhancements, the proposals underscore a commitment to resilience and security. Input Output intends to expand formal verification processes and independent audits, along with introducing implementation standards to ensure multiple software clients can function on the network without introducing systemic risk. This strategy aligns with a broader goal of eliminating dependence on any single codebase or engineering team.

The drive for decentralization extends beyond technology to include the distribution of development responsibilities to a growing array of specialized contributors. Partnerships with firms like VacuumLabs, Midgard Labs, and the Cardano Foundation are in the works, while discussions are ongoing to establish an organization dedicated to maintaining the Haskell-based node. By the close of 2026, Input Output anticipates that much of its current workload will be assumed by a broader ecosystem of independent teams, fostering a modular development structure and greater opportunities for smaller organizations to contribute discrete components.

The funding proposals also introduce innovative features to expand Cardano’s utility, such as enhancements to the account model, the introduction of a native multi-asset treasury system, and “Babel fees” allowing transaction costs to be paid in stablecoins rather than ADA. Noteworthy among these is the Pogun project, aiming to bring bitcoin-based decentralized finance to Cardano through a trust-minimized bridge and integrated credit markets, reflecting a trend among blockchain platforms seeking to tap into the liquidity and activity of the dominant cryptocurrency ecosystem.

Despite the reduced funding request, Input Output views the proposal slate as critical infrastructure. The organization sifted through over 25 potential initiatives before finalizing the list, providing transparency by sharing details of rejected proposals. The upcoming vote serves as a test of Cardano’s evolving governance model, with each proposal outlining milestone-based funding conditions and designated delivery leads, demonstrating the network’s transition towards self-sustaining decentralization free from reliance on its founding organization for direction or delivery.