Cardano cuts costs, boosts speed... makes a 'decisive move'

▲ Cardano (ADA)/AI-generated image ©

Cardano (ADA) has entered a phase of 'selection and concentration' by adopting a strategy that focuses on Bitcoin DeFi infrastructure and scalability, even while cutting development funds by nearly half.

According to the investment media FXStreet on April 22 (local time), Cardano developer Input Output Global (IOG) has finalized its 2026 financial portfolio at $46.8 million, a reduction of approximately 50% from the previous year's $97.5 million. This funding will be allocated to a total of 10 key proposals, focusing on essential growth areas of the network.

These proposals include the Leios consensus algorithm upgrade, which will boost Layer 1 processing speed by 10 to up to 65 times, and 'Pogun,' a project to build Bitcoin-based DeFi infrastructure. Pogun aims to expand the Cardano ecosystem through non-margin credit markets, yield infrastructure, and trust-minimized Bitcoin bridges.

Governance voting on fund allocation has begun via Intersect, and delegates (DReps) will cast their votes until May 24. IOG also presented a plan to launch the Leios testnet in June and complete its mainnet implementation within the year.

This budget cut is interpreted not as a one-time measure but as a structural change. IOG has stated its intention to continue additional cost reductions for several years, transitioning to a self-sustaining operational model. Concurrently, it plans to attract new contributors such as Catalyst to expand community participation and strengthen collaborations with VacuumLabs, Midgard Labs, Pragma, and the Cardano Foundation.

Meanwhile, Cardano's price is trading around $0.25 and attempting to break through the $0.26 resistance level. The market is watching to see if this strategy, which simultaneously boosts scalability and decentralization despite budget cuts, can lead to mid-to-long-term growth.

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