What happened?
Cardano’s development team, Input Output Global, got permission from the community to use 96 million ADA, worth about $71 million, for a year-long series of upgrades. This decision marks the first time Cardano’s community has directly approved treasury funding for core development. The funding will be released in stages based on delivery milestones, with oversight from Intersect, and will support planned enhancements to scalability, cost-efficiency, and developer tools.
Who does this affect?
This funding approval affects the entire Cardano ecosystem, including developers, stake pool operators, and the broader user community. Developers will benefit from improved tools and a more modular node design, aiding new core contributors. Stake pool operators will see reduced operating costs, while users can anticipate faster and cheaper transactions.
Why does this matter?
This upgrade initiative is crucial as it positions Cardano to become more competitive among major blockchain networks. By enhancing scalability and reducing costs, Cardano aims to attract more users and developers, potentially increasing its market share. Successfully implementing these upgrades could positively impact ADA’s value and strengthen Cardano’s standing in the evolving blockchain landscape.