- Cardano will fund network upgrades with 96 million ADA using its on-chain community treasury system.
- The 12 month plan targets scalability developer tools and blockchain connections across the Cardano network.
- Funds will be released in stages with oversight and monthly updates to ensure transparency and accountability.
Cardano’s core developer, Input Output Global (IOG), has received approval to access 96 million ADA from the network treasury. The amount, valued at $71 million, will support a 12-month plan to upgrade the Cardano blockchain. This marks the first time the community has directly funded protocol development through Cardano’s on-chain voting system.
Strong Community Support for Development Proposal
The proposal passed with 74% of participants voting in favor. Out of 213 total votes, 200 supported the plan. Six voted against it, while seven abstained. The community’s backing indicates growing trust in decentralized governance. Voting occurred through Cardano’s community-led system, showing its role in shaping technical progress.
Funding Tied to Development Progress
The 96 million ADA will not be released all at once. IOG will receive the funds in stages, depending on progress. A group called Intersect will oversee development to ensure milestones are met. Smart contracts will manage fund distribution to keep the process on track. This approach aims to increase transparency and accountability.
Upgrade Plan Targets Scalability and Performance
IOG’s proposal outlines three focus areas: scalability, developer tools, and blockchain interoperability. One major upgrade, Project Acropolis, plans to break down the Cardano node into modular parts. This change will make it easier for new developers to contribute to the network. Hydra, another key focus, aims to boost transaction speed and reduce costs.
Current data from blockchain firm Messari shows Cardano processes a block every 20 seconds. The average transaction fee stands at 0.34 ADA. IOG plans to cut RAM usage and reduce operating costs for stake pool operators. These changes will support smoother and cheaper operations across the network.
New Tools and Ecosystem Growth Planned
Cardano’s development team also plans to introduce advanced tools for smart contract development. They aim to make cross-chain connections easier. These upgrades will help Cardano communicate with other blockchains more effectively. The funding will also support external developers within the Cardano ecosystem. These vendors will contribute code and expand network decentralization.
To maintain transparency, IOG will publish monthly updates on the project. They will also release engineering timesheets and detailed budget reports each quarter. These updates aim to build trust and keep the community informed about progress. The oversight process will help ensure proper use of funds.
Concerns were raised before the vote about the proposal’s high cost and accountability. Some community members suggested breaking the plan into smaller, separate votes. Despite this, the proposal passed with broad support.
