Cardano Proposal for $71M Network Upgrades Gains Approval Amid Community Transparency Concerns

Cardano has approved a 96 million ADA treasury allocation to fund critical network upgrades focused on scalability, developer onboarding, and interoperability, with milestone-based payments ensuring transparency and accountability.

• Cardano’s core development team secured $71 million equivalent ADA funding approved by 74% of voters.

• Key projects include Hydra for faster transactions and Project Acropolis for modular node architecture.

• Community concerns addressed via milestone payments, monthly updates, and independent oversight by Intersect.

Cardano secures 96 million ADA funding for upgrades focused on scalability and transparency. Stay updated with COINOTAG for the latest crypto news.

What Are the Key Features of Cardano’s 96 Million ADA Upgrade Proposal?

Cardano’s 96 million ADA upgrade proposal focuses on enhancing network scalability, improving developer experience, and enabling seamless interoperability. The funding is milestone-based, with payments released upon delivery of upgrades. Independent oversight by the Cardano member organization Intersect ensures transparency and accountability throughout the 12-month development plan.

How Will the Upgrades Improve Cardano’s Performance and Onboarding?

The proposal includes the Hydra protocol, designed to enable faster, low-cost transactions, and Project Acropolis, which modularizes the Cardano node to simplify onboarding for new developers. Current average transaction costs stand at 0.34 ADA with a 20-second block time. The upgrades aim to reduce RAM usage, lower operational costs for stake pool operators, and lay the groundwork for advanced smart contracts and improved interoperability.

Source: Input Output

Why Did the Cardano Community Express Concerns About the Funding?

Community members raised questions about the overall cost, transparency in fund allocation, and accountability for deliverables. Some suggested breaking the proposal into smaller, vote-specific budgets. Despite these concerns, the proposal passed with 74% approval. A competing bid from Cardano’s Technical Steering Committee was not endorsed by Intersect, leaving the final decision to the community.

What Oversight Measures Are in Place for the Treasury Spending?

Funding will be released based on milestones, with Intersect acting as an independent administrator. IOG commits to monthly progress updates, detailed engineering timesheets, and quarterly budget reports. Smart contracts and a dedicated committee will provide additional oversight, ensuring funds are used effectively and transparently.

Source: Adam Rusch

How Are Other Blockchains Advancing Their Networks in 2025?

Other major blockchains are also implementing upgrades this year. Solana increased its block capacity by 20%, raising the limit to 60 million compute units with plans for further expansion. Ethereum raised its gas limit to nearly 44.92 million and launched the Pectra hard fork, enhancing data blob capacity and validator staking limits. The upcoming Fusaka upgrade is scheduled for late 2025.

What Does This Mean for Cardano’s Competitive Position?

Cardano’s focus on scalability, cost reduction, and developer experience positions it competitively alongside Solana and Ethereum. These upgrades aim to attract more developers and users by improving performance and interoperability, critical factors in blockchain adoption and ecosystem growth.

Frequently Asked Questions

What are the main upgrades included in Cardano’s development plan?

The plan includes Hydra for faster transactions, Project Acropolis for modular node architecture, and optimizations to reduce costs and improve interoperability.

How does Cardano plan to maintain transparency with the treasury funds?

Cardano commits to milestone-based payments, monthly progress reports, and independent administration by Intersect to ensure transparent fund usage.

Key Takeaways

• Milestone-Based Funding: Ensures payments are tied to delivered upgrades.
• Transparency Measures: Monthly updates and independent oversight by Intersect.
• Network Enhancements: Focus on faster transactions, developer onboarding, and interoperability.

Conclusion

Cardano’s 96 million ADA treasury approval marks a significant step toward enhancing its network’s scalability and developer ecosystem. With structured oversight and community involvement, these upgrades aim to strengthen Cardano’s position in the competitive blockchain landscape, fostering innovation and long-term growth.

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