The Cardano network has received approval for 96 million ADA to implement key updates and enhancements to the blockchain. This decision was supported by 74% of the voters under a new plan to increase scalability and developer tools.
Funding Approval and Objectives
Approval to access 96 million ADA, equivalent to about 71 million USD, was granted by the community. This funding aims to deliver key upgrades to the blockchain over the next 12 months. Plans include developing the Hydra protocol for faster and cheaper transactions and Project Acropolis to optimize the architecture of Cardano nodes.
Oversight and Funding Model
IOG will be subject to strict oversight to address community concerns over costs and accountability. Payments will be released based on the completion of development milestones. The Intersect organization will act as an independent administrator, and smart contract-based checks and a dedicated committee will monitor progress. IOG has also committed to publishing monthly progress reports.
Comparison with Other Proposals and Blockchain Upgrades
A competing proposal from Cardano's Technical Steering Committee was considered but ultimately not endorsed by Intersect. Meanwhile, other blockchains are also making upgrades: Solana has expanded its block capacity by 20%, and Ethereum implemented the Pectra hard fork in May, increasing its gas limit.
The funding marks a significant step toward decentralized governance and improvement of Cardano's functionality. The successful implementation of the plan will require adherence to established oversight and transparency from IOG.
