Cardano Price Prediction: $71M Approved For Network Upgrades

Key Takeaways

• Cardano approved a $71M treasury spend to fund 12 months of network upgrades.
• 74% of the community voted in favor, despite transparency concerns.
• Upgrades include Hydra, Project Acropolis, and performance enhancements for stake pool operators.
• Funds will be released milestone-by-milestone, with oversight from Intersect and smart contracts.
• The development could positively influence long-term Cardano price prediction, especially if milestones are met on time.

A New Era Of On-Chain Governance

Input Output Global (IOG), the primary development entity behind Cardano, submitted a proposal to secure funding for a 12-month development plan aimed at enhancing the network’s scalability, interoperability, and overall developer experience.

Source: X (@InputOutputHK)

Despite a handful of objections regarding transparency, accountability, and budget structure, the community largely supported the proposal. Out of 213 total votes, 200 were in favor, 6 against, and 7 abstained.

What Does The $71M Funding Cover?

The funds will be used to support a number of high-impact upgrades, including:

• Hydra: A protocol focused on enabling fast, low-cost transactions.
• Project Acropolis: A modular re-architecture of Cardano’s node system to streamline onboarding and development.
• Performance Optimizations: Reducing RAM usage and lowering operating costs for stake pool operators.
• Interoperability Enhancements: Laying the groundwork for seamless smart contract deployment across different blockchains.

Milestone-Based Funding Model For Greater Accountability

To ensure responsible use of the treasury funds, payments will be disbursed only upon completion of specific milestones.

Intersect, a member-based organization formed to steward Cardano’s governance, will act as an independent administrator of the fund.

Oversight & Reporting Requirements

IOG is required to:

• Publish monthly development updates
• Submit engineering timesheets
• Provide quarterly budget breakdowns
• Use smart contract-based oversight

This framework aims to enhance transparency and build trust within the ecosystem.

Concerns Over Transparency & Spending

While the proposal ultimately passed, it did not go unchallenged. Several Cardano community members raised valid concerns about:

• The scale of the funding and how such a large amount will be managed.
• The lack of a breakdown into smaller budget items requiring individual votes.
• The competing proposal from the Technical Steering Committee (TSC), which was not endorsed by Intersect.

Source: X (@AdamRusch)

Broader Context

Cardano isn’t the only blockchain ramping up development efforts in 2025.

Across the crypto ecosystem, major platforms are initiating ambitious upgrades to improve network capacity, lower costs, and attract more developers.

Ethereum’s 2025 Roadmap

• May 7th: Ethereum’s Pectra hard fork went live, boosting the number of data blobs per block and increasing validator limits.
• End of 2025: The Fusaka upgrade is expected, aiming to further scale Ethereum’s capabilities.

Solana’s Upgrades

• July 22nd: Increased its block capacity by 20% to 60 million compute units.
• More Solana improvements are planned before the end of the year.

Cardano Price Prediction: What This Means For ADA

With such a significant injection of capital into Cardano’s development roadmap, the long-term outlook for ADA becomes increasingly bullish, but with caution.

Historically, major upgrades and community-driven governance milestones have influenced positive sentiment, often preceding price rallies.

Factors Supporting A Bullish ADA Forecast

• Improved scalability and lower transaction costs could attract more users and dApp developers.
• Enhanced developer tools may lead to a surge in new projects being launched on Cardano.
• Positive governance sentiment builds community trust, often driving retail and institutional investment.

However, the Cardano price prediction still hinges on broader market conditions, Bitcoin performance, and the ability of IOG to meet their development milestones.

FAQ

What is the $71M Cardano treasury spend being used for?

The funds are allocated for a 12-month development plan that includes upgrades for scalability, developer onboarding, transaction speed, and interoperability.

Who manages the Cardano development funds?

Intersect, a community-based organization, will administer the funds with oversight mechanisms such as smart contracts, budget reports, and milestone checks.

What projects are included in the Cardano development plan?

Key projects include Hydra (scalable transactions), Project Acropolis (node re-architecture), and performance enhancements to reduce costs for stake pool operators.

How does this impact the Cardano price prediction?

While it’s not a guarantee, historically, major development milestones and transparent governance can improve investor sentiment, potentially boosting ADA’s price over the long term.