HomeBlockchain TechnologyCardano Treasury Narrows As Input Output Moves Ahead With Leios Launch

Cardano Treasury Narrows As Input Output Moves Ahead With Leios Launch

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Input Output filed 9 Cardano treasury withdrawal actions, including ₳27.7M for Leios, as reserve pressure, scaling targets remain in focus.

Cardano’s treasury faces new pressure after Input Output submitted nine withdrawal actions, including a ₳27.7 million request for Leios work. 

The filings arrive as Cardano targets far higher transaction capacity by 2030 and seeks long-term fee support as reserve funds decline. 

Leios is presented as the main consensus upgrade to raise throughput while keeping the current security model intact.

Related reading: 

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Nine treasury actions add to funding pressure

Input Output, also known as IO, submitted nine new Cardano treasury withdrawal actions. 

The package covers developer tools, upgrades, maintenance, scalability, and consensus work. Besides, the combined requests total well over ₳160 million based on the listed figures.

The largest named technical request is the Consensus Initiative. It seeks ₳27,714,342 for Leios development in the 2026 to 2027 cycle. Other requests include ₳13,103,039 for Cardano Upgrades and ₳62,134,630 for the Cardano Maintenance Initiative.

The filings also include a ₳10,425,871 request tied to Midgard Labs for layer-2 scalability. 

A separate proposal with VacuumLabs seeks ₳11,877,575 for Plutus performance, correctness, and usability. Blockfrost also requested about ₳7.92 million for maintenance and next-generation indexing.

These actions come as Cardano governance weighs spending against a shrinking treasury. The stated 2030 target is a move from about 800,000 monthly transactions to more than 27 million. That target is linked to a wider push for network self-sufficiency as reserve funds fall over time.

Leios is central to Cardano’s scaling plan

IO presents Leios as the mechanism built to deliver the needed throughput increase. The proposal says Leios extends Ouroboros Praos rather than replacing it. That approach aims to preserve the current security model while increasing transaction capacity.

The plan introduces Endorser Blocks and committee-based validation. 

According to the proposal text, the design could support a 10 to 65 times throughput increase. IO says this can be done without weakening decentralization or making stake pool operations unworkable.

The Leios request sits within the broader Consensus Initiative portfolio.

IO describes this as the largest technical initiative among the submitted actions. It links the work to Cardano’s plans for DeFi, real-world assets, and enterprise use.

The proposal says the goal is not to chase theoretical limits. It says the work is focused on building enough network capacity to support future demand. It also ties that capacity to the ability to generate more fee revenue over time.

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Proposal sets path from testnet work to release candidate

IO says the current budget cycle ends in June 2026 with an Early Public Testnet milestone. During that cycle, it reports that CIP-164 was merged. It also says initial throughput was shown on an alpha feature-complete implementation.

The proposal adds that Leios was deployed on a dedicated public testnet. 

The next cycle would move the project from prototype status toward mainnet readiness. IO says this stage would advance the work through Software Readiness Levels 5 to 8.

The first objective is a release candidate. That includes a rewrite of consensus components, conformance testing, and integration into the main node. It also includes Leios block structure work for the Dijkstra ledger era.

The second objective is high-confidence validation through load testing and adversarial testing. The third objective is hard-fork enabling work within IO’s control. That includes documentation, workshops, client interfaces, and support for projects such as DB-Sync, Mithril, and Blockfrost. 

IO states that success is measured by completing those activities, not by the mainnet hard fork itself.

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