In a groundbreaking moment for the Cardano community, holders of ADA have collectively voted to approve funding for core protocol development for the first time. With an impressive 73.93% support, the decision marks a significant step towards truly decentralized governance, as ratified on August 2. This development signals what the team at Input Output Engineering (IOE) describes as the commencement of a “new era” for Cardano.
This approval allows for the withdrawal of 96,817,080 ADA to fund the 2025 IOE Core Development Proposal, setting a precedent for community-driven decision-making in funding core engineering functions. Previously, such funding relied on established budgets or allocations set by the foundation.
A New Chapter for Cardano’s Governance
Input Output has expressed that this vote represents a fundamental change in the progression of Cardano. Tim Harrison, the Executive Vice President of Community & Ecosystem, labeled the event as a “milestone moment,” stressing that core protocol development is now being funded directly through community consensus. This new mandate facilitates a path forward characterized by transparency and shared responsibility amongst stakeholders.
With a focus on accountability, Cardano’s new model incorporates Intersect, a member-based organization, functioning as an independent overseer. Disbursements will occur based on a milestone system, contingent upon verified accomplishments. This oversight mechanism will utilize smart contracts, supported by a dedicated committee, alongside monthly updates and comprehensive quarterly budget reports.
The community’s feedback reflected a feeling of shared ownership and responsibility. Input Output celebrated the moment by stating, “The Cardano community just made history… core development funding has been directly approved by the community,” with Cardano founder Charles Hoskinson emphasizing gratitude for the community’s support and trust and urging collective action.
The approved roadmap aims to enhance various aspects such as throughput, the developer experience, and interoperability. Key initiatives highlighted include Ouroboros Leios for performance improvements, Hydra for ultra-low-latency transactions, and Mithril to decrease bootstrap time. Additional upgrades focus on extending smart-contract capabilities and implementing Project Acropolis, which will make core contributions more accessible through modular re-architecture. Other performance optimizations aim to lower operational costs and improve system efficiency.
Ricky Rand, General Manager at Input Output Engineering, portrayed the vote as an empowering step: “This funding is just the beginning… it represents a model for decentralized funding and delivery at scale. Our mission now is to deliver with integrity and maintain transparency.”
This pivotal decision comes during an active governance phase, where multiple treasury withdrawal actions are on the table for community decision-making. DReps, or delegate representatives, are engaged in voting on each item. Though IOE’s roadmap is part of this broader picture, it distinctively marks the first time the community has taken charge of core protocol funding, a role often monopolized by centralized entities in other networks.
In addition to leveraging IOE’s capabilities, the approach encourages wider participation. Input Output plans to involve external vendors, many affiliated with the Cardano Developer Ecosystem Coalition, to enhance delivery efforts and assist contributors in becoming independent proposers for future initiatives. This strategy aims to fortify decentralization over the long run.
As of the latest updates, ADA is trading at $0.73, reflecting the community’s ongoing engagement and interest in the developments within the Cardano network.
