$71 million Cardano Upgrades Approved as Network Eyes Scalability

- Cardano community approves $71 million upgrade funding. - Scalability, smart contracts, and interoperability top priorities. On August 4, 2025, Cointelegraph reported that the Cardano community approved $71 million in funding for upgrades aimed at scalability, interoperability, and developer tools. The proposal, which came from Input Output Global (IOG), the blockchain’s primary development team, allocated 96 million ADA (approximately $71 million) and passed with 74% of the community vote, marking a milestone for Cardano’s decentralized governance model. The approved 12-month development plan focuses on three primary objectives: enhancing scalability, improving the developer experience, and achieving greater interoperability. One key initiative is the implementation of Hydra, a project designed for faster, more cost-efficient transactions. Another initiative, Project Acropolis, will revamp Cardano’s node architecture to simplify developer onboarding and provide greater flexibility. The plan also includes upgrades to support advanced smart contracts and seamless communication between blockchains, laying the groundwork for better technical interoperability. Although the proposal passed with a strong majority, some community members expressed concerns about the initiative's cost and called for greater transparency and accountability in managing the funds. To address these concerns, the project will use a milestone-based funding structure, with Intersect, a member-based organization in the Cardano ecosystem, overseeing payments as IOG delivers the upgrades. A dedicated committee and smart contracts will provide additional oversight and monitoring. In addition, to ensure clear and ongoing reporting, IOG has committed to publishing monthly project updates, engineering timesheets, and quarterly expenditure breakdowns. This decision, the first time the Cardano community has directly authorized core development funding, represents a key step in the blockchain’s shift toward decentralized governance. As of August 4, 05:09 UTC, Cardano (ADA) is trading at $0.734, with a 2.638% increase in its 24-hour trading volume, according to the latest market data.