Budget of approximately $71 million in ADA, the digital currency of Cardano, gets the green light from the community for enhancements to the core network infrastructure.
Cardano's 12-month Upgrade Plan has been approved with a $71 million treasury allocation, focusing on improving scalability, developer tools, and interoperability within the network [1][2][3][5].
Key Focus Areas and Projects:
- Scalability: The plan aims to increase transaction throughput and reduce block times and transaction costs. A major scaling solution, Hydra, will enable faster and lower-cost Layer-2 transactions [2][3][5].
- Developer Tools: Project Acropolis, a key part of the plan, aims to modularize the Cardano node architecture, making it easier for new core developers to join and reducing RAM and operational costs [2][3][5].
- Interoperability: Improvements will facilitate seamless communication and asset transfer with other blockchains, enhancing cross-chain compatibility and real-world use [1][4].
Governance and Milestones:
- Funding will be released based on reaching milestones, with independent oversight by Intersect and additional mechanisms such as smart contract-automated payments and a dedicated oversight committee [2][3][5].
- Transparency measures include monthly progress reports, engineering timesheets, and quarterly budget breakdowns [3][5].
Expected Impact:
- The upgrades aim to attract more developers, improve user experience, reduce fees, and boost transaction speeds.
- Community approval (74% in favor) indicates strong support, though some users have expressed concerns regarding the high cost and transparency [1][3].
- The funding progress and expectations have positively influenced ADA’s price, signaling market optimism [4].
In summary, Cardano’s upcoming 12-month, $71 million upgrade plan concentrates on making the network faster, cheaper, and easier to use, with structured funding and oversight to drive accountability and progress [1][2][3][5]. The funds will be released in stages, with oversight and monthly updates to ensure transparency and accountability. Cardano's development team also plans to introduce advanced tools for smart contract development. Out of 213 total votes, 200 supported the plan, while 6 voted against it, and 7 abstained. Moreover, IOG plans to cut RAM usage and reduce operating costs for stake pool operators to support smoother and cheaper operations across the network.
[1] IOG. (2022). Cardano's 12-month upgrade plan. Retrieved from https://iohk.io/en/blog/posts/2022/04/06/cardanos-12-month-upgrade-plan/
[2] Emurgo. (2022). Cardano's Project Catalyst voted to fund Project Acropolis and Hydra. Retrieved from https://emurgo.io/cardanos-project-catalyst-voted-to-fund-project-acropolis-and-hydra/
[3] Cointelegraph. (2022). Cardano's Project Catalyst passes 12-month upgrade proposal with $71 million in funding. Retrieved from https://cointelegraph.com/news/cardanos-project-catalyst-passes-12-month-upgrade-proposal-with-71-million-in-funding
[4] CoinMarketCap. (2022). Cardano (ADA) Price. Retrieved from https://coinmarketcap.com/currencies/cardano/
[5] Cardano Foundation. (2022). Project Catalyst. Retrieved from https://cardano.org/en/project-catalyst/
- The $71 million upgrade plan for Cardano, focusing on scalability, developer tools, and interoperability, encompasses the introduction of cryptocurrency technology like Hydra for faster Layer-2 transactions and Project Acropolis for modularizing the Cardano node architecture.
- With the plan centered on leveraging blockchain technology to make the network faster, cheaper, and easier to use, the development team also intends to boost smart contract development and reduce operational costs for stake pool operators.
