TLDR
- Cardano community approves first-ever treasury funding of $71 million (96 million ADA) for core network upgrades with 74% voting in favor
- Input Output Global receives funding for 12-month development plan focusing on scalability, developer experience, and interoperability improvements
- Key projects include Hydra protocol for faster transactions and Project Acropolis for modular node re-architecture
- Charles Hoskinson suggests bond-style funding for Snek memecoin’s 5 million ADA treasury request for exchange listings
- ADA price rises 5% following vote approval, with ETF speculation boosting market interest
The Cardano community has made history by approving the first community-voted treasury funding for core network development. The proposal passed with 74% support, unlocking $71 million worth of ADA tokens for network improvements.
The Cardano community just made history.
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…
— Input Output (@InputOutputHK) August 2, 2025
Input Output Global (IOG), Cardano’s primary development team, submitted the proposal requesting 96 million ADA from the treasury. The vote took place on August 3, with 200 members voting in favor, six against, and seven abstaining.
This marks a major shift in Cardano’s governance model since the Chang hardfork upgrade. The community can now directly decide how treasury funds are allocated for development projects.
The 12-month development plan focuses on three main areas: scalability improvements, better developer experience, and enhanced interoperability. Funding will be released based on milestone completion rather than upfront payments.
Intersect, a Cardano member-based organization, will serve as an independent administrator for the funds. IOG must provide monthly updates, engineering timesheets, and quarterly budget breakdowns to ensure transparency.
Key Development Projects Receive Funding
The approved proposal includes several major technical upgrades. Hydra, a protocol designed for fast and low-cost transactions, represents one of the primary initiatives receiving funding.
Today, the @IntersectMBO Board of Directors has to resolve a difficult situation. If you are a DRep engaged in the Budget Reconciliation Process, you already know that members of the Intersect Technical Steering Committee (TSC) have put forth a proposal outlining their vision…
— Adam Rusch (@AdamRusch) April 28, 2025
Project Acropolis will restructure the Cardano node architecture to make it more modular. This change aims to improve flexibility and make it easier for new developers to contribute to core development.
Current Cardano transaction costs average 0.34 ADA with blocks processed every 20 seconds. The upgrades target reducing these costs and improving overall network performance.
IOG plans to lower RAM usage and reduce operational costs for stake pool operators. The team also wants to implement technical foundations for more advanced smart contracts.
Some community members raised concerns about the funding amount and transparency measures. Others questioned whether the proposal should be divided into smaller, separate votes for individual components.
A competing proposal from Cardano’s Technical Steering Committee was submitted but not endorsed by Intersect. The community ultimately chose to support IOG’s comprehensive development plan.
Memecoin Funding Request Sparks Discussion
Following the treasury vote, the Snek memecoin community requested 5 million ADA for exchange listings. Snek operates on the Cardano network and generates over $2 million in daily trading volume.
Charles Hoskinson, Cardano’s founder, responded to the request with specific suggestions. He proposed structuring the funding as a bond that would repay the treasury with interest over three years.
Hoskinson clarified that listing fees would not be covered by public funds for any project, including Midnight. His comments emphasized the need for financial responsibility when using treasury resources.
The Snek proposal has created debate about which types of projects should receive community funding. No official research exists yet on the long-term outcomes of treasury-backed memecoin initiatives.
Market Response and Future Outlook
ADA’s price increased 5% following the vote announcement, trading at $0.7265. The market cap reached $25.65 billion with daily trading volume hitting $1.01 billion.
Prediction markets have increased the odds of a Cardano ETF approval in 2025 to 83%. Bloomberg analysts give it a 90% chance, citing regulatory changes under the current administration.
Other blockchain networks are also implementing upgrades this year. Solana increased its block capacity by 20% in July, while Ethereum raised its gas limit and completed the Pectra hard fork.
The treasury funding approval demonstrates Cardano’s commitment to community-driven development decisions. IOG will begin implementing the approved upgrades with oversight from multiple accountability measures in place.
