#What is Cardano’s plan for its Treasury funds?
Cardano is planning to allocate 70 million ADA from its Treasury to bolster key infrastructure within its ecosystem by 2026. This funding initiative aims at enhancing critical areas such as stablecoin integration, institutional custody, cross-chain bridges, and advanced analytics, ultimately strengthening Cardano’s decentralized finance (DeFi) and real-world asset capabilities.
This initiative has gathered support from a coalition of prominent organizations within the Cardano community, including Input | Output, EMURGO, the Cardano Foundation, Intersect, and the Midnight Foundation. Together, they have submitted a budget proposal that highlights vital integrations necessary for the network's growth plan for 2026.
#What areas will the funding cover?
The proposed budget is structured around five essential pillars: onboarding leading stablecoins, enhancing institutional custody and wallet solutions, developing sophisticated on-chain analytics, establishing robust cross-chain bridges, and adopting globally recognized pricing oracles.
These foundational utilities are intended to provide the necessary infrastructure needed for Cardano to expand its DeFi offerings and attract institutional participation in real-world asset markets.
#What approvals are needed for the proposal to succeed?
Before the funds can be distributed, the proposal requires approval from the Delegated Representatives and the Constitutional Committee. This requirement underscores the governance process within the Cardano network, ensuring that key stakeholders have a say in significant financial decisions.
The coalition of core entities has been actively engaging with several premier integration partners, indicating a proactive approach towards fulfilling the proposal’s objectives. Intersect plays a pivotal role as the administrator of the collaboration, with backing from its governing board.
#What challenges has Cardano faced recently?
This proposal comes in the wake of a temporary chain partition that affected the Cardano blockchain. This disruption was linked to a crafted, malformed delegation transaction, which was traced back to a bug found in a cryptographic library during 2022 on the Preview testnet. The chain experienced division as a direct consequence of this technical issue, highlighting the ongoing challenges in maintaining blockchain stability and security.