Input Output (IO), the development organization behind Cardano, has submitted nine treasury proposals totaling $38.9 million for 2026, a nearly 50% reduction from the $97.5 million requested last year. This intentional decrease aligns with IO's transition to a self-sustaining model, aiming to reduce reliance on treasury funds each year until full operational independence.
Leios Upgrade Targets Over 1,000 TPS
The most prominent technical initiative is the Leios consensus algorithm upgrade, expected to boost Layer 1 throughput by 10x to 65x, targeting over 1,000 transactions per second. The testnet is slated for June 2026, with mainnet deployment by year-end. Complementing Leios is UTXO HD, a node optimization that enables Cardano nodes to run indefinitely on consumer-grade hardware. IO regards both upgrades as the final pieces of a multi-year performance roadmap.
Bitcoin DeFi Engine Pogun
On the cross-chain front, IO is backing Pogun, an end-to-end Bitcoin DeFi engine for Cardano. It integrates a zero-margin credit market, yield infrastructure, and a trust-minimized Bitcoin bridge. The credit market is expected to launch on mainnet in Q2 2026.
Other Key Proposals
The slate also includes: Plutus script optimization (aiming to reduce script preparation overhead by ~25%), Layer 2 scalability via Hydra and Midgard Labs, formal verification tooling through the High Assurance Consortium, and Blockfrost API infrastructure scaling to match Leios throughput. Three protocol upgrades are planned: CIP-159 (native micro-fee support), CPS-23 (native multi-asset on-chain treasuries), and Babel Fees (allowing users to pay transaction fees with stablecoins without holding ADA).
IO is collaborating with external teams: VacuumLabs on Plutus work, Midgard Labs on L2, and Pragma and the Cardano Foundation on developer relations. Discussions are underway to establish a new organization dedicated to Haskell engineering.
Jeff Watson, Technical Head of IO Cardano Business Unit, stated: “These proposals are directly linked to ecosystem growth, and IO is well-positioned to execute swiftly. We are in an optimal position to rapidly adapt and improve overall utility and user experience across the ecosystem.”
All nine proposals will be managed through Cardano’s member-based governance body, Intersect. DReps must vote by May 24, 2026. Funding will be released based on milestone achievements. Charles Hoskinson is scheduled to release a video targeting DReps this week.