Cardano's core development team, Input Output Global (IOG), has submitted a $71 million budget allocation from the treasury for community approval to fund the network’s 12-month upgrade plans.
Overall Budget Approval
Following a lengthy vote that drew criticism over transparency and accountability, the proposal was accepted with a 74% “yes” vote. Under this decision, 96 million ADA, approximately 13% of the protocol's treasury, will be transferred to IOG in phases.
Key Development Goals
Key development goals include a layer-2 scaling solution called Hydra for faster and lower-cost transactions and Project Acropolis, aimed at facilitating developer participation. Plans are also in place to reduce memory usage and lower operational costs for validators.
Community Discussions
The proposal has been under discussion since the beginning of the year. Some community members criticized the lack of detailed budget line items and the proposal's failure to break down into smaller, separate sections that could be voted on. A competing proposal submitted by Cardano's Technical Steering Committee garnered initial support but failed to pass the vote.
The budget approval for development signifies community support while rival chains continue to progress with their upgrades, highlighting the active evolution of blockchain technology.
