Input Output Slashes Cardano Funding Request to Pivot Toward Decentralized Development

Input Output, the primary engineering force behind the Cardano blockchain, is seeking a reduced funding allocation of $46.8 million for 2026. This request marks a sharp decline from the $97.5 million sought in 2025, signaling a strategic shift toward reducing the network's dependency on a single development entity. The funding request consists of nine proposals aimed at enhancing the network's technical capabilities and diversifying its ecosystem. By phasing out its reliance on community treasury funds, Input Output intends to transition core development tasks to specialized third-party firms, including Midgard Labs and VacuumLabs, as the company moves toward self-sufficiency. Central to the proposal is 'Leios,' a consensus upgrade designed to boost transaction capacity by 10 to 65 times, targeting speeds exceeding 1,000 transactions per second. This would place Cardano's throughput in competition with high-speed networks like Solana. Additionally, the 'Pogun' system aims to enable Bitcoin holders to access decentralized finance (DeFi) services, such as lending and yield generation, without utilizing centralized intermediaries. The proposal will be voted on by approximately 1,000 elected delegates, known as DReps, through May 24. This vote serves as a critical test for Cardano's governance model, determining if the community will continue to defer to Input Output or embrace a more fragmented, competitive development landscape. The request comes amid modest growth in network activity. The recently launched USDCx stablecoin has reached 14.6 million tokens in circulation, while total assets deposited on the network rose to $142.7 million from $137.5 million.