Cardano Devs Secure 96M ADA to Fund Major Network Upgrades

Highlights:

• Cardano approves $71M funding for upgrades through a community governance vote.
• IOG will improve speed, tools, and blockchain connections over the next year.
• Project Acropolis and Hydra are key parts of Cardano’s upgrade plan.

Cardano’s core developer, Input Output Global (IOG), has received approval from the community to access 96 million ADA, worth about $71 million. These funds will support a full year of planned upgrades to improve the network. The proposal gained strong backing, with 74% voting in favor. It received 200 votes for, six against, and seven abstentions.

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Cardano Begins Community-Funded Upgrade Plan

The funding will come from Cardano’s on-chain treasury. The network’s decentralized voting system is directly funding core development for the first time. The 12-month plan targets three main areas: scalability, developer tools, and better connections with other blockchains. The team will release the funding in parts based on development progress. A group called Intersect will check if the work is being done. Smart contracts and a team will help make sure everything stays on track. 

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

The IOG proposal highlights major upgrades like Project Acropolis. It aims to redesign the Cardano node into modular parts, making it more flexible and easier for new developers to join. Another key focus is Hydra, designed to boost transaction speed and lower costs across the network. 

As reported by blockchain research firm Messari, Cardano currently has an average transaction fee of 0.34 ADA and processes one block every 20 seconds. IOG also plans to cut RAM use and lower costs for stake pool operators by improving performance. They also want to add better tools for advanced smart contracts and make it easier for Cardano to connect with other blockchains.

Ricky Rand, General Manager at IOE, believed the vote showed strong trust in Cardano’s future and proved that large-scale decentralized funding could work. He added that the real work was only just beginning. IOE plans to keep the process clear and open. They will publish monthly progress updates, share engineering timesheets, and provide detailed budget reports every quarter. External vendors from the Cardano Developer Ecosystem Coalition will also help with development. This will support decentralization by bringing in new contributors.

Cardano Community Approves Core Funding in Historic First, Says IOG’s Tim Harrison

Tim Harrison, vice president of community and ecosystem at IOG, noted that this marks the first instance of Cardano’s community directly approving funds for core protocol development. Leading up to the vote, several members expressed concerns about the proposal’s overall cost, how the allocated funds would be utilized, and how the developers would be held accountable. Some also recommended breaking the proposal into smaller, clearly budgeted parts, each requiring an individual vote.

Harrison said:

“This is a milestone moment for Cardano. For the first time, core protocol development is being funded directly by the community. This vote of confidence empowers us to move forward with full transparency, shared responsibility, and a renewed commitment to building an open, resilient ecosystem.” 

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