The Cardano blockchain community has taken a historic step by directly approving funding for core technical development for the very first time. The proposal, submitted by Input Output Global (IOG), requested 96 million ADA (approximately $71 million) to modernize the network, improve scalability, developer experience, and interoperability.
Despite concerns over transparency and accountability, the proposal passed with 74% approval.
What’s in the Proposal: Faster Transactions, Better UX, Lower Costs
The new 12-month development roadmap includes major projects such as:
🔹 Hydra – a protocol for fast and low-cost transactions
🔹 Project Acropolis – a modular rearchitecture of Cardano's node for flexibility and easier developer onboarding
🔹 Performance optimization – reducing RAM usage and operational costs for stake pool operators
🔹 Technical foundations for advanced smart contracts and seamless interoperability
According to blockchain analytics firm Messari, Cardano currently has an average block time of 20 seconds and a transaction fee of about 0.34 ADA. The goal is to make the network faster, cheaper, and more efficient.
How Will the Funding Be Released?
Funding will be milestone-based, overseen by the independent Cardano Intersect organization. Deliverables will be monitored through smart contracts and a dedicated oversight committee.
IOG has also committed to transparency by releasing monthly updates, technical progress reports, and quarterly budget breakdowns.
The Community Raises Concerns Over Costs and Oversight
Despite the green light, community members expressed concerns around:
🔹 Budget size concerns
🔹 Unclear use of teams
🔹 Accountability for promised outcomes
🔹 Transparency of fund allocation
Some users suggested breaking the budget into smaller, voteable segments, each with its own specific targets. Others questioned whether the competing proposal by the Technical Steering Committee (TSC) might have been a better choice — though it was ultimately voted down.
“The Community Decides” – A First in Cardano’s Governance
Tim Harrison, VP of Community and Ecosystem at IOG, called the event a milestone, saying: “This is the first time the community has directly approved core network development funding.”
Adam Rusch, a board member of Intersect, had emphasized before the vote that “it’s up to the community to decide which proposal to support” — and that’s exactly what happened.
Other Blockchains Are Upgrading Too – Competition Is Heating Up
Cardano isn't alone in pushing for tech upgrades this year:
🔹 Solana, on July 22, increased block capacity by 20%, with more expansions planned
🔹 Ethereum raised its gas limit to 44.92 million on July 22, allowing for more transactions per block
🔹 The Pectra hard fork on May 7 introduced more data blobs per block and increased validator staking limits
🔹 The next major Ethereum upgrade, Fusaka, is scheduled for late 2025
Cardano is now entering a new development phase — with $71 million in funding, community support, and clear technical goals. The only question left: Will it deliver?
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