Key Takeaways:
- Cardano community approved a $71M (96M ADA) proposal from IOG to fund network development over the next year, with 74% voting in favor.
- The roadmap includes scalability upgrades like Hydra, modular node redesign via Project Acropolis, and enhanced governance via Intersect and smart contracts.
- Despite historic approval, some community members raised concerns over cost transparency and proposed smaller, phased funding.
The Cardano community has approved a 96 million ADA (approx. $71 million) proposal to fund core network development over the next 12 months, marking the first time such funding was directly approved by a community vote.
Submitted by Input Output Global (IOG), the plan received 74% support.
The Cardano community just made history.
— Input Output (@InputOutputHK) August 2, 2025
For the first time ever, core development funding has been directly approved by the community – ushering in a new era of decentralized governance.
Thank you all for your support. This is more than a vote of confidence, it’s a shared…
Key development goals include enhancing scalability, developer experience, and interoperability, with major initiatives like Hydra (for faster, more cost-efficient transactions) and Project Acropolis (a modular node redesign to aid core developer contributions).
Funding will be milestone-based, overseen by Intersect, an independent Cardano-focused organization.
Governance will be enforced via smart contracts and a dedicated committee, with IOG required to submit monthly updates and quarterly reports.
While many see the vote as a milestone for decentralized governance, concerns were raised over the cost, transparency, and the absence of a phase-based approach.
A competing proposal from the Technical Steering Committee (TSC) was rejected due to lack of coordination with Intersect and unapproved vendor selections.
The upgrades also aim to reduce transaction costs (currently 0.34 ADA) and lower operational demands for stake pool operators.
This development mirrors broader trends, with Solana and Ethereum also pursuing major scalability upgrades.
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