IOG to receive $71 million from Cardano community for network improvements

Cardano developer will receive 13% of the funds from the treasury over 12 months

Cardano community to allocate $71 million for network modernization

04.08.2025 - 16:55

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What’s new? The Cardano development team at Input Output Global (IOG) has secured approval to allocate $71 million in Treasury funds for network upgrades over 12 months. The community’s decision was preceded by a protracted vote that debated concerns about transparency, accountability, and cost.

The outcome of the vote

What else is known? The proposal, approved by 74% of the community, authorizes 96 million native tokens of Cardano (ADA) or 13% of the protocol’s treasury to be sent to IOG.

Payments will be phased in and monitored by Intersect, a governance body under the control of network participants. The IOG emphasized that smart contracts and an independent committee will strengthen control over the spending of funds.

The main outcomes of the development funding should be the release of the Hydra Layer 2 (L2) network to scale Cardano and enable cheaper transactions, as well as the launch of the Acropolis project, which will rebuild Cardano’s node system to increase modularity and simplify developer connectivity.

Among other things, the IOG development team also plans to reduce memory consumption and lower the operating costs of validators.

Successful implementation of the initiative could ultimately lead to increased activity among project developers and new use cases for Cardano, which will drive demand for ADA.

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The proposal, introduced earlier this year, faced resistance from the community, with critics pointing to a lack of specificity and calling for it to be broken down into smaller items for separate votes on each.

Meanwhile, a similar network modernization proposal from Cardano’s Technical Steering Committee was ultimately rejected despite early support.

At the same time, competing networks have been actively rolling out upgrades. Solana increased its compute unit limit by 20% last week and is preparing to raise it another 66%, while the Ethereum team is gearing up for its second major hard fork of the year, called Fusaka.

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