The Cardano community approves $71M for network upgrades, supporting Hydra and Acropolis projects with phased funding and decentralized oversight by Intersect.
Cardano’s community has approved a large funding proposal to improve its blockchain network. On August 4, the blockchain’s main development team, Input Output Global (IOG), received the green light to access 96 million ADA (worth around $71 million) from Cardano’s treasury. The community voted and made this decision, which is a significant moment in terms of the governance of the network.
Cardano Community Approves Upgrade Funding with 74% Support
This was accepted by 74% of the vote. Cardano network explorer AdaStat states that 200 members voted yes, six voted against, and seven abstained. This vote indicates the presence of a significant community in favor of the upgrade of the blockchain. It is also the initial instance that the core development of Cardano will be financed by the neighborhood through on-chain governance.
Tim Harrison, the Executive Vice President of Community and Ecosystem at Input Output, said that this is a milestone moment for Cardano. He added that this type of funding will promote its openness and collective responsibility in the design of the protocol. He further added that the team will also ensure open and resilient ecosystem is built.
The approved plan contains a 12-month roadmap that is aimed at enhancing scalability, improving developer experience, and making interoperability with other blockchains. The objectives of these goals are to ensure that Cardano is faster, flexible, and can be used easily by developers.
The funding is going to be used in two big projects. The first one is Hydra, a Layer 2 scaling protocol that aims to speed up transactions and reduce their expenses. Second is Project Acropolis, a redesign of the Cardano node to become more modular and future-proof.
Cardano Commits to Transparency in $71M Community-Led Upgrade
To ensure accountability, the funding will be released in stages. Intersect will control the payments as they align with specific project milestones. Additionally, this approach ensures accountability within decentralized governance. IOG has agreed to produce month-wise updates, elaborate engineering time sheets, and a quarterly budget report. Through this system, the progress is monitored by the community, and developers are held responsible for delivering the results.
Despite the massive support, some members of the community expressed concerns about the proposal. Specifically, they questioned the large sum of money involved and sought greater clarity on how the funds would be used. Moreover, a few suggested that the proposal could have been broken down into smaller parts, each with its vote and budget. As a result, these concerns underscore the importance of maintaining transparency and ongoing dialogue. Ultimately, ensuring inclusive and open governance is essential for the long-term trust and effectiveness of decentralized systems.
Regardless, the authorization proves that the Cardano community is willing to invest in the future. The vote is highly indicative of the faith in the potential of the blockchain and the necessity of continuous improvements. As Cardano continues to pursue these initiatives, it may also consolidate its position as a major player in the blockchain ecosystem.
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Ultimately, the $71 million upgrade plan for Cardano is a historic change in the funding and management of blockchain development. The network is set to grow tremendously with the support of the community and the defined oversight. With the start of the work, everyone will be looking up to Cardano to make good on its promises and be the leader in decentralized innovation.
