TL;DR
Cardano has officially approved a $71 million funding proposal (96 million ADA) to support its core development roadmap, with 74% of voters backing the initiative.
The funds will be released in phases based on verified milestones, under the oversight of Intersect and smart contracts.
Key upgrades include Hydra scalability and Project Acropolis, while the Midnight privacy protocol continues to attract significant institutional attention and strategic partnerships.
For the first time in its history, the Cardano community has directly voted to allocate treasury funds for core network development. The proposal, submitted by Input Output Global (IOG), received overwhelming support, 200 votes in favor and only six against, unlocking 96 million ADA (around $71 million) for a year-long plan focused on scalability, modularity, and interoperability.
The funds will be distributed incrementally, tied to clearly defined milestones and monitored by Intersect, a decentralized governance organization. In addition to monthly reports and quarterly budget disclosures, IOG is required to submit engineering documentation and timesheets, with all disbursements subject to validation via smart contracts, ensuring accountability and transparency throughout the process.
Major Upgrades To Performance And Developer Access
Among the standout initiatives are Hydra, which aims to drastically increase transaction throughput, and Project Acropolis, a modular re-architecture of the Cardano node intended to simplify onboarding for core developers. These changes are designed to reduce friction for developers and improve resource efficiency across the network, making it more scalable for widespread use.
Also planned are performance optimizations to lower RAM usage and operational costs for stake pool operators, along with technical foundations for advanced smart contracts and enhanced cross-chain compatibility. Cardano’s average transaction fee currently sits at 0.34 ADA, with most blocks completing in around 20 seconds, leaving room for further improvement through these ambitious upgrades.
Midnight Project Attracts Institutional Confidence
Alongside the development funding, Cardano’s Midnight project, its zero-knowledge data protection layer, has been gaining institutional traction ahead of its NIGHT token distribution. With over 100 partnered ventures and a strong privacy focus, Midnight is positioned to be a cornerstone of Cardano’s long-term ecosystem strategy, attracting both new users and enterprise-level adoption.
Charles Hoskinson has reiterated that none of the treasury funds will be used for exchange listings or promotional efforts. Instead, he suggested a bond-based model where funded projects could return ADA to the treasury after generating revenue—bringing sustainable economics into the ecosystem.
As Ethereum and Solana roll out their own technical enhancements in 2025, Cardano’s focus remains steady: build long-term utility through transparent, modular, and high-performance infrastructure rooted in community governance and openness.
