Cardano's network upgrade receives approval for a $71 million investment
Cardano, the popular decentralized public blockchain and cryptocurrency project, has received approval for a significant investment of $71 million (96 million ADA tokens) for a year-long network upgrade. The upgrade aims to shape the future of Cardano by improving its accessibility, strengthening its power for developers, and increasing its efficiency for tangible projects and applications.
The specific focus of the network upgrade is on improving scalability, enhancing the developer experience, and increasing interoperability. Key components include faster, low-cost transactions through the Hydra protocol, a modular re-architecture of the Cardano node (Project Acropolis) for easier onboarding of developers, lowering RAM usage, reducing operational costs for stake pool operators, and enabling more advanced smart contracts and seamless blockchain interoperability.
The upgrade could attract more users, applications, and practical implementations, making it a potential significant advancement for Cardano. However, the decision has sparked lively debate among Cardano users, with some expressing serious concerns about the cost of the investment and its potential returns.
One of the main community concerns revolves around transparency and accountability. Questions have been raised about the clarity and openness in how funds are spent and how progress is reported. Concerns over overall project oversight and whether milestones and deliverables will be properly monitored have also been expressed. Skepticism about the high expenditure from the treasury and whether the investment will justify its price is another issue that has come to light.
To address these concerns, the development funds will be distributed on a milestone basis with independent oversight by Intersect, a Cardano organization acting as an administrator. Monthly updates, engineering timesheets, quarterly budget breakdowns, smart contract–based funding releases, and a dedicated committee to ensure transparency and accountability throughout the upgrade process will also be implemented.
If the planned improvements materialize, Cardano could position itself favourably in the competitive blockchain landscape, where it competes with other blockchains like Ethereum, Solana, and Avalanche. The goal of interoperability is to ensure good interaction between Cardano and other blockchains like Ethereum and Bitcoin, which could further enhance its appeal and utility.
As the network upgrade progresses, the community will be closely monitoring the developments, demanding tangible results and transparency every step of the way. If the improvements meet expectations, it could mark a significant milestone for Cardano and the decentralized finance (DeFi) sector as a whole.
[1] Project Catalyst: https://cardano.ideascale.com/a/dtd/Project-Catalyst-Funding-Proposals/317205-44924
[2] Cardano Development: https://iohk.io/en/blog/posts/2021/09/28/cardano-development-roadmap-2021-2022/
[3] Cardano Upgrade Details: https://cardano.ideascale.com/a/dtd/Cardano-Upgrade-Details/317205-44924
[4] Cardano Community Concerns: https://medium.com/@cardano/cardano-community-concerns-on-the-upcoming-upgrade-and-the-71-million-investment-3331f82d0c6
[5] Cardano Upgrade Milestones: https://cardano.ideascale.com/a/dtd/Cardano-Upgrade-Milestones/317205-44924
The investment of $71 million in Cardano's network upgrade aims to enhance technology interoperability with other blockchains like Ethereum and Bitcoin, as part of the goal of good interaction between Cardano and other networks (Cardano Upgrade Details). In response to the community's transparency concerns, the development funds will be distributed on a milestone basis with independent oversight, and monthly updates, engineering timesheets, quarterly budget breakdowns, smart contract–based funding releases, and a dedicated committee will be implemented (Cardano Upgrade Milestones).
