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Cardano ADA Community Backs $71M Funding for Scalability and Smart Contract Upgrades

Cardano ADA Community Backs $71M Funding for Scalability and Smart Contract Upgrades

Author:
ADA News
Published:
2025-08-05 09:40:34
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[TRADE_PLUGIN]ADAUSDT,ADAUSDT[/TRADE_PLUGIN]

In a landmark decision, the Cardano (ADA) community has approved a $71 million treasury allocation for core protocol development through its decentralized governance system. The proposal, which passed with 74% approval on August 5, 2025, represents the first direct funding of Input Output Global's roadmap by ADA holders. This significant investment will primarily focus on enhancing Cardano's scalability through Hydra layer-2 solutions and advancing its smart contract capabilities. The move demonstrates growing community confidence in Cardano's ecosystem and sets a precedent for decentralized funding of blockchain infrastructure. As one of the largest community-approved development budgets in crypto history, this decision could potentially accelerate Cardano's position in the competitive smart contract platform space while maintaining its rigorous peer-reviewed approach to upgrades.

Cardano Community Approves $71M Funding for Protocol Development

Cardano's decentralized governance system has greenlit a $71 million treasury allocation for Core protocol upgrades. The funding proposal passed with 74% community approval, marking the first time ADA holders directly finance Input Output Global's development roadmap.

The capital will target scalability enhancements, including Hydra layer-2 improvements and advanced smart contract capabilities. Despite the bullish governance milestone, ADA prices remain under pressure this week as traders weigh technical factors against long-term fundamentals.

Cardano Community Approves $71M Upgrade, ADA Price Rally Anticipated

The cardano ecosystem has reached a governance milestone with community voters approving a $71 million treasury proposal to fund network upgrades. The decision unlocks 96 million ADA (13% of the treasury) for core development, marking the first time funding has been directly authorized through decentralized governance.

"This is a watershed moment for Cardano," said Input Output's Tim Harrison. The upgrades target interoperability, scalability, and developer experience—with potential transaction cost reductions from $0.25 and improved throughput. Testnets are expected within two months.

Market observers note the approval coincides with ADA trading at $0.45, as traders speculate whether the upgrade could catalyze a MOVE toward $1. The vote demonstrates growing sophistication in blockchain governance models, with Charles Hoskinson's simple endorsement—"Let's get it done"—capturing community sentiment.

Cardano Community Approves $70 Million Upgrade Plan Amid Bullish Price Outlook

Cardano's ADA token shows signs of a potential resurgence as the community unanimously approves a $70 million treasury allocation for network upgrades. The funding, earmarked for scalability solutions and developer tools, marks a historic shift toward decentralized governance.

Input Output Global will deploy the capital over the next year to enhance Ouroboros Leios, Hydra scaling, and cross-chain interoperability features. These technical improvements position Cardano to capture greater market share in the competitive layer-1 blockchain space.

Despite macroeconomic headwinds from Federal Reserve policy uncertainty, the upgrade roadmap fuels speculation about ADA's price potential. Market observers note the $10 price target remains ambitious but increasingly plausible given the network's accelerating development cycle.

Cardano's 'Account Enhancement' CIP Sparks Developer Enthusiasm for DApp Innovation

A groundbreaking Cardano Improvement Proposal (CIP) focused on account enhancements has ignited significant excitement within the ecosystem. Anastasia Labs CEO Phillip Disarro hailed the still-unnumbered proposal as transformative for decentralized application development, particularly for onchain governance systems.

The technical upgrade would enable native-asset deposits in reward-style accounts, allowing transactions to lock non-ADA tokens as collateral. This architectural shift moves deposit accounting from the UTxO LAYER to reward-account mechanisms, solving long-standing pain points for DApp builders. Smart contracts could stream micro-fractions of tokens as fees, while the Cardano Treasury could diversify beyond ADA holdings.

Cardano founder Charles Hoskinson amplified the call for community review within hours of Disarro's endorsement. The proposal represents a potential inflection point for developer experience on what proponents call the 'Ethereum killer' network.

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