IO: Developer Experience Initiative

System3mo ago1 post

On-chain changes

  • 3,601,926 ₳paid tostake17xz...6ghh5qjr

Abstract

Proposal as pdf: https://ipnso-com.ipns.dweb.link/?cid=QmQPLwjTwZeGrzsgs2QiC6crJLcMg64fU2kDYZmPZ9o7wf

Cardano's long-term utility depends on attracting and retaining developers — and this proposal accelerates that by making it dramatically easier to build on the platform. The target: a 30%+ improvement in developer growth rate within 12 months.

Why this matters: Cardano currently has roughly 550 active developers, with no signs of growth, whereas Ethereum added nearly 2,000 new developers per year on average over the last 6 years. Survey data from 109 Cardano builders points to a clear set of barriers — fragmented tooling, scattered documentation, lack of coordination, and a steep learning curve. These are solvable issues, and solving them unlocks the ecosystem flywheel: more builders lead to more DApps, which attract more users and generate more protocol revenue, which attracts more builders.

The initiative delivers five practical outcomes. First, community alignment paired with a bounty program that incentivizes improvements to ecosystem tools and libraries where pain points are greatest. Second, a setup tool ("cardano-init") that lets a new developer go from zero to a working project in minutes, regardless of their preferred tech stack. Third, an OpenZeppelin-style collection of ready-to-use smart contracts that gives builders a solid starting point. Fourth, a unified, simplified onboarding experience in the Developer Portal, built in collaboration with Intersect and coordinated with the team responsible for the Developer Portal. Fifth, a measurement hackathon designed to quantify progress and identify the next priorities.

IO is collaborating with Intersect's Developer Advocate Program and exploring a partnership with TxPipe to broaden delivery capacity. Intersect serves as the designated administrator, with milestone-based disbursement and independent third-party assurance. Unspent funds are returned to the Treasury.

Treasury Ask: ₳3,601,926

Motivation & rationale

As a builder new to Cardano, I want to go from zero to an MVP on testnet in under two weeks, so that I can validate whether Cardano is the right platform for my project without a large upfront time investment.

This proposal funds a focused six-month program to streamline Cardano's developer tooling, documentation, and onboarding experience — directly targeting a 30%+ improvement in developer growth rate.

Opportunity: The current developer experience (DevX) on Cardano is subpar and fragmented, making it difficult for new and experienced developers to build, test, and deploy decentralized applications efficiently. The opportunity lies in harmonizing tooling, establishing canonical patterns, and consolidating documentation and libraries — changes that will accelerate development cycles and lower the barrier to entry for developers coming from other ecosystems (EVM, Web2), converting early interest into long-term commitment.

Solution: The core of this proposal is to provide an ecosystem-wide strategy that aligns the incentives of companies and entities that contribute to DevX, builds with them and on their work, and enables us, as an ecosystem, to work together to achieve a DevX that is similar to, or even better than, what competing ecosystems provide. We will do this by:

  • Creating bounties to incentivize developers of key projects that contribute to DevX to improve their tooling and libraries.

  • Creating a starter CLI to quickly set up a new project independent of the preferred tooling and with AI assistance. Everything that can be upstreamed will be upstreamed.

  • Compiling and creating an OpenZeppelin-like library of ready-to-use smart contracts that will allow new developers to either deploy directly or start from a solid base. It’ll also serve to ground LLMs.

  • Unifying and improving the documentation and educational resources to streamline onboarding under the Developer Portal as the main entry point for developers.

  • Keeping track of the current and future states of all projects that contribute to DevX and help them fit within the broader context.

Why now: Over the years, our community has built amazing tooling, documentation, and libraries. We believe we have reached a point where each piece of the puzzle can offer great value on its own, we just need someone neutral to take the time of putting them together in a way that is easily accessible to new and experienced developers.

Technical Collaboration: IO is collaborating with Intersect's Developer Advocate Program and exploring a technology partnership with TxPipe to broaden delivery capacity and bring specialist developer tooling expertise to the Cardano ecosystem, ensuring these critical capabilities are sustained and strengthened by multiple capable organizations.

Proposed Value Delivered (Why)

This initiative is meaningful to the Cardano community because it is based on developer feedback and directly addresses the core challenge of developer adoption and retention.

Independent of cycles, market conditions, or other factors, if something is useful, it will be used. Hence, the long-term value of Cardano and similar programmable blockchains is directly tied to the value their ecosystems provide to users. We need a rich ecosystem to attract users, and we need builders to create it. This is especially important for DeFi, our most valuable vertical. So, the ecosystem flywheel starts with supporting builders.

That also means that if one ecosystem has more builders than another, it is more likely to have greater utility in the long run. This puts us at a huge disadvantage compared to direct competitors (Ethereum and Solana). The clearest way we can visualize our current situation is by comparing developer growth.

On average, Ethereum grows by 1940 devs/year (3.5x the TOTAL number of developers in Cardano, which is currently ~550) while Solana grows by 884 devs/year (1.6x the TOTAL number of developers in Cardano). Why is that?

Based on analyzing datasets about GitHub activity and surveys made to 109 Cardano developers, one of the main reasons is a subpar developer experience:

  • Immature & Fragmented Tooling: Libraries and tooling across languages are incomplete, inconsistent, and don’t work well together.
  • Poor Documentation & Onboarding: No unified, up-to-date documentation or "blessed path" for newcomers. Learning materials are scarce and scattered across sources.
  • Steep Learning Curve: The EUTXO model and FP requirements create significant friction.
  • Subpar Developer Experience: No cohesive development environment, unfriendly abstractions, and going from zero to a working DApp is difficult compared to EVM ecosystems.
  • Lack of Ecosystem Coordination: Duplicated efforts, unawareness of existing work, and no clear vision for architecture standards. Teams reinvent the wheel instead of building on shared foundations.

This strategy addresses these issues most pragmatically and directly:

  • The “Developer HUB” item (optimizing the Developer Portal for onboarding) will significantly reduce fragmented and poor documentation and significantly improve onboarding.
  • Community alignment and collaboration will reduce immature, fragmented tooling and the lack of ecosystem coordination. On top of this, it’ll economically contribute to existing teams that build DevX-related tooling.
  • The “cardanol-init” setup CLI will provide a cohesive development environment to help developers get started quickly.
  • The Contracts Library will provide solid starting points to speed up development and, together with Developer HUB, reduce the initial learning curve.
  • Developer Outreach and Reactive work will help smooth out onboarding and solve paper cuts.
  • All of the items together significantly improve the overall developer experience. Especially for new developers looking into adopting Cardano.

The predicted impact is:

  • A measurable decrease in development time and onboarding effort.
  • A measurable improvement in NPS score and other direct measurements of DevX.
  • The relative growth rate (acquisition speed) of developers increases by at least 30% compared to the baseline (relative GR of 0.3).

A relative GR of 0 means Cardano grows at the same pace as now relative to competing ecosystems; a sustained positive GR means Cardano is gaining ground and could eventually reach or surpass competitors. This proposal targets a relative growth rate of at least 0.3 — a 30%+ acceleration in developer growth compared to the baseline.

This translates to an increase in DApps and directly contributes to Adoption & Utility, Ecosystem Growth, and Monthly Active Users (MAU).

Core Cardano 2030 KPIs

Core Cardano 2030 KPIs (Adoption) Alignment KPI Alignment Narrative
TVL N/A
Monthly Transactions Yes - Fully Same rationale as MAU.
Monthly Active Users (MAU) Yes - Fully We expect this initiative to increase MAU by improving developer retention and reducing time-to-deployment. By lowering friction in the builder journey—through standardized tooling, unified documentation, and educational resources—we anticipate a 20–30% increase in developer onboarding within 12 months. This translates into more production-ready DApps entering the ecosystem, directly driving user acquisition and engagement. Each successfully onboarded developer team can bring hundreds to thousands of active users, creating a multiplier effect on MAU growth.

Additional KPIs

Additional Cardano 2030 KPIs (Adoption) Alignment KPI Alignment Narrative
Reliability: Monthly Uptime (6 epochs) N/A
Operational Resilience: Voting Power Distribution of Controlling Stake N/A
Operational Resilience: Alternative Full Node Clients N/A
Revenue / Adoption: Annual Protocol Revenue Yes - Fully By increasing MAU and Monthly Transactions, the protocol revenue increases.
Governance: DRep Participation Rate N/A
Scalability: Throughput Capacity per day N/A

Cardano 2030 Pillars

Cardano 2030 Pillars Alignment Pillar Alignment Description
Pillar 1: Infrastructure & Research Excellence N/A
Pillar 2: Adoption & Utility Yes - Fully This initiative directly enables non-speculative utility by removing the primary barrier to adoption: developer friction. By delivering production-grade tooling, canonical patterns, and streamlined onboarding paths, we make it economically viable for builders to choose Cardano over competing ecosystems. Superior developer experience is a prerequisite for superior end-user experience—every improvement in DevX compounds into faster deployment cycles, higher-quality DApps, and ultimately, real-world utility across high-value verticals.
Pillar 3: Governance N/A
Pillar 4: Community & Ecosystem Growth Yes - Fully Strong developer experience is the foundation of ecosystem growth. This proposal cultivates a skilled developer base through structured learning paths, hands-on hackathons, and continuous community engagement (Discord, live streams, build clubs). By making Cardano more accessible to both Web2 and EVM developers, we expand the talent pool and accelerate the flywheel: more builders attract more projects, which attract more builders.
Pillar 5: Ecosystem Sustainability & Resilience N/A

Deliverables & Roadmap

Sequence Item Description
Q3 2026 Community Alignment: Aligning the ecosystem with an overall DevX strategy. Map all ecosystem tooling to create a baseline for the Community Collaboration and Reactive items.
Q3 2026 Developer Outreach: Support existing channels (e.g., answer questions in Discord). Translate unorganized questions/knowledge into issues/PRs in documentation. Create content about Contracts Library and Setup CLI/TUI items. Support Pentad integrations (Stablecoins, Bridges, Oracles), focusing on exposing features and defining the ideal UX/onboarding flow for developers.
Q3 2026 cardano-init: Create a Setup CLI to easily start DApp projects. A “create-react-app” or “TanStack Builder” for Cardano, where users can pick any desired stack combination, and everything is set up and ready out of the box. This high-level umbrella tool will leverage all identified tools, provide AI/LLM-native integrations and commands, and ensure that getting started with a new project on Cardano takes just a few minutes. Everything that can be upstreamed will be upstreamed to improve the underlying tooling. We’ll deliver the initial version of this tool with a reduced stack, but ready to be extended with more tooling. The plugin system will allow anyone to add their tooling without needing to know how the tool's internals work. Significantly reducing work by contributors and maintenance. NOTE: One of Cardano High Assurance’s team proposals will account for the plugin architecture of this CLI to improve integration with their tooling.
Q3 2026 Developer HUB: The objective is to have a single entry point for developers new to Cardano. After weeks of analyzing different options and consulting with the Cardano Foundation, Intersect, and community members, we decided that the Developer Portal should be the entry point. So, we’ll collaborate with all the previously named parties to get this done there. We will: Define, organize, and create onboarding content for three key user personas: EVM/Blockchain developer, Web2 developer, and Technical entrepreneur. Ensure coding LLM agents can access this information. Add a CI/CD pipeline to maintain working code snippets. Generalize content to serve as onboarding material independently of your tooling preferences. Restructure parts or all of the portal to optimize for onboarding and LLM use. Related: Detailed strategy
Q3 2026 ContractsLibrary: Inspired by OpenZeppelin's role in the EVM ecosystem and Cardano libraries like design-patters and the former Maestro contracts library, this library will provide battle-tested, ready-to-use contract implementations that developers can use as building blocks, inspiration, or a ready-to-go implementation for their applications. It’ll target both building blocks and use-case-level contracts. Here, there’s more information about the reasoning and the differences between this and existing libraries. We’ll design and implement standardized, reusable smart contracts (on- and off-chain, with an emphasis on DeFi) along with related tooling/platform. The deliverable includes creating the library's infrastructure and website and shipping at least 5 ready-to-audit smart contracts (both on-chain and off-chain). For example, Vesting, Programmable Tokens, DEX (Decentralized Exchanges), Swap, Lending, and other contracts. NOTE: One of Cardano High Assurance’s team proposals will pick up from here and formally prove the properties of these contracts.
Q4 2026 Community Collaboration: We’ll incentivize improvements to key devx-related tools and libraries via bounties paid to maintainers and contributors. We’ll emphasize the biggest pain points in each case. For example: On-chain and off-chain interaction. Systems to improve hard-fork readiness. Introspection/serialization issues.
Q4 2026 Measurement: We’ll deliver a hackathon at the end of this proposal to measure developer experience. This will give us a clear idea of both the progress we have made and the next steps to keep improving developer experience. The setup and approach will differ from a regular hackathon to control for variables that could contaminate the data. Here’s a description of how we’ll do it (inside “Direct Metrics).
Reactive Address high-ROI opportunities surfaced through ecosystem alignment. Examples include: Targeted contributions to community-maintained tooling. Additional SDK integrations. Fill key documentation gaps. Building new, currently unidentified, tooling. Etc. Selection criteria, decision-making about how to address these, and outcomes will be reported transparently.

Resources

The initiative will be delivered by a team composed of project management, TypeScript and web engineering, DApp development, Rust tooling, and developer relations specialists.

Budget

Total Treasury Ask: ₳3,601,926

Funding Distribution
Development & Engineering teams ₳2,929,680 81%
Infrastructure ₳36,019 1%
Security & Audits ₳36,019 1%
Legal & Compliance ₳36,019 1%
Engagement & Ecosystem support ₳432,231 12%
Operations & Delivery ₳72,039 2%
Governance ₳36,019 1%
Others ₳36,019 1%

Pricing Principles: IO is requesting funding in ADA and has provided USD figures as a reference. A portion of the funding shall be specifically tied to demonstrating measurable impact on Cardano's KPIs and pillars

  • Development & Delivery: The majority of costs are needed to fund the delivery resources.
  • Community Bounties: fund OSS bounties for community-solved DevX issues. Included within personnel allocation.
  • Hackathon & Marketing: prize pool and marketing support for the measurement hackathon.
  • Ecosystem support, Audit, Assurance & Contingency: Leadership, ecosystem, and delivery to support execution and wider alignment. Independent work assurance and audits, plus contingency to account for complexities during execution

Risks

Type Description Likelihood Severity / Impact Mitigation
Community / Ecosystem Differing priorities across ecosystem entities and builders may require additional coordination to achieve alignment. Low Medium: Several milestones depend on community acceptance (e.g., dev hub, startup CLI). We would still be technically able to deliver milestones, but the desired effect might not last. We discussed this proposal with dozens of developers, and all of them agree that this is something needed.
Process Hiring a team could take time. Medium Medium: Would complicate things, but some work can start during hiring. We have already started filtering profiles and have reached out to companies that can provide augmentation.

Additional Information

Known Limitations: Adoption of our contributions by external tooling, library, and documentation developers depends on alignment and mutual value. To avoid issues with working on a PR that won’t get merged, we’ll communicate with the team that owns the repository to ensure they want our contribution and how. Even with this, we can’t ensure all of our PRs will be merged.

Release Date / Solution Readiness: No on-chain release needed.

Treasury Governance & Compliance

Contract Management

A written off-chain Legal Contract will be created between Input Output and the Cardano Development Holdings (CDH), as mandated by the Constitution, and will be administered by Intersect. This will include details of the project delivery schedule and dispute resolution.

Project Delivery

All milestones, acceptance criteria, payment amounts and expected delivery dates will be agreed between the Input Output and Intersect, acting on behalf of the CDH. Input Output will deliver according to the agreed-upon project schedule within the Legal Contract, of which the necessary information will be made public via the budget management platform via transaction metadata.

Defined by the milestones within a Legal Contract, Input Output will submit and attest milestone acceptance to the community, Intersect or 3rd Party Assurer.

Project progress will be monitored via Intersect's delivery assurance function which will be communicated to the community.

Acceptance of the work will be supported by a 3rd Party Assurer, who will be responsible for reviewing and signing off the work completed at each project milestone against the corresponding milestone deliverables detailed within the Legal Contract. This work is funded from a portion of this treasury withdrawal.

Auditable Accounts & Fund Delegation

Budget Management Tooling

To administrate treasury funds on-chain, Intersect will utilize the treasury management smart contract framework developed by Sundae Labs. The smart contracts have been extensively tested including audits from TxPipe and MLabs.

Final mainnet validation test can be seen via the Disburse action within transaction: 0f591dc544ae14102dbb4a74d5311a6acffc1772b163d8b7a9656b9525950b17

This withdrawal will utilise Intersect’s 2025 treasury reserve contract with address being: stake17xzc8pt7fgf0lc0x7eq6z7z6puhsxmzktna7dluahrj6g6ghh5qjr
Funds will later be migrated to a 2026 treasury reserve contract once established.

Budget Management Specifics

Intersect will utilize a single Treasury Reserve Smart Contract (TRSC), with many Project-Specific Smart Contracts (PSSC), managed by Intersect. Intersect's management consists of three 'admin' and two Intersect 'leadership' roles. An Oversight Committee consisting of five external, independent third-party entities will provide checks and balances on Intersect, and safeguard against errors and unilateral control. The administration of both TRSC and PSSCs will be managed by Intersect, with external oversight on certain actions from the Oversight Committee.

The 2025 TRSC Oversight Committee consists of Sundae Labs, Cardano Foundation, Dquadrant, Xerberus and NMKR. Their role is to independently verify key administrative actions using on-chain logic, ensuring accuracy and consistency without exercising discretion over governance decisions.

For all details on Intersect's configuration please see the Smart Contract Guide on the knowledgebase.

The high level permissions are as follows:

  • TRSC Fund and PSSC Modify
    • Two of the three Intersect admins, two of the five trusted entities and one of the two Intersect leadership sign-off must authorize
  • TRSC Disperse
    • Two of three Intersect admins, three of five trusted entities and two of two Intersect leadership sign-off must authorize
  • TRSC Pause and Resume
    • Two of three Intersect admins, and one of two Intersect leadership sign-off must authorize
  • TRSC Sweep
    • One of three Intersect admins, and one of two Intersect leadership sign-off must authorize
  • TRSC Reorganize
    • Two of three Intersect admins and three of five trusted entities must authorize
Processes

Upon enactment of this governance action, funding for this project will be directed into the TRSC's stake account. All instances of TRSC and PSSC can not be staked with a SPO and will be delegated to the auto-abstain predefined DRep. From here funds will be withdrawn into a UTxO remaining at the TRSC.

When a 2026 TRSC is established, the funding for this project will be migrated via the ‘disburse’ action.

When the Legal contract is prepared and Input Output is ready, funding for this project will be transferred using the Fund action to a PSSC. All milestones will be outlined within the metadata.

A dashboard will be available for the community to audit the TRSC or PSSC and track metrics related to this withdrawn ada as well as being immutably verifiable on chain.

Funding Denomination

All amounts in this proposal are denominated in ada (₳). The total Treasury ask is ₳3,601,926. USD figures ($864,462) are provided for reference only, based on an ADA/USD rate of 0.24.

Refund Conditions

All funds not disbursed by the end of the delivery period will be returned to the Cardano Treasury. A final reconciliation will be published as part of the oversight reporting cycle. In the event of partial delivery or scope reduction, unspent funds associated with cancelled or reduced deliverables will be returned proportionally.

Prior Treasury Receipts

IO and its affiliated entities has been accountable for delivery of work funded by the Cardano Treasury. The total funds allocated has been ₳130,708,860 across a number of projects within Treasury Smart Contract, to date IOG has withdrawn ₳78,459,777.

Workstream Ada received % of allocation Corresponding Governance Action
Blockfrost ₳1,137,500 88% 8ad3d454f3496a35cb0d07b0fd32f687f66338b7d60e787fc0a22939e5d8833e#2
Catalyst ₳3,095,400 60% ** 8ad3d454f3496a35cb0d07b0fd32f687f66338b7d60e787fc0a22939e5d8833e#23
IOE ₳47,159,487 49% 8ad3d454f3496a35cb0d07b0fd32f687f66338b7d60e787fc0a22939e5d8833e#1
IOR ₳26,840,000 100% 8ad3d454f3496a35cb0d07b0fd32f687f66338b7d60e787fc0a22939e5d8833e#32
Governance ₳227,390 38% 8ad3d454f3496a35cb0d07b0fd32f687f66338b7d60e787fc0a22939e5d8833e#22

**Note: for Catalyst this only reflects the workstream that focuses on the Hermes Infrastructure and UX/UI improvements, not the execution and operation of Funds 14-16. Per Info Action this is in the process of transitioning to Cardano Foundation.

Net Change Limit Compliance

The requested amount does not at time of submission, on its own or in aggregate, breach the applicable 350M Net Change Limit covering Epoch 613 to Epoch 713.

In accordance with the guardrail TREASURY-02a, this withdrawal does not exceed the NCL at the moment of submission.

Audit & Oversight

Audit and oversight costs are included within the overhead applied to this proposal. The Intersect administration fee covers administrative oversight and is reflected within the cost of this proposal. Independent oversight will be provided through Intersect and technically capable third-party, including reporting obligations and milestone-based disbursement controls.

Standardized Format & Immutable Hosting

Upon finalization, this proposal will be hosted on IPFS in an immutable format. The blake2b-256 hash of the document will be provided for on-chain reference and verification.

Rationale highlights

Why some of the largest DReps voted for and against, in their own words.

  • Yes584.2M ₳

    Summary Yoroi DRep revises its prior ABSTAIN to YES on “IO: Developer Experience Initiative”, following a reassessment of the balance between structural concerns and strategic urgency. Rationale The strategic case has become harder to set aside. Developer...

    Summary

    Yoroi DRep revises its prior ABSTAIN to YES on “IO: Developer Experience Initiative”, following a reassessment of the balance between structural concerns and strategic urgency.

    Rationale

    The strategic case has become harder to set aside. Developer experience is time-sensitive, and the cost of a further delay to a well-motivated, empirically grounded programme is material. Yoroi now considers the delivery risks manageable relative to the importance of the goal, particularly given IO’s demonstrated capacity to execute at this scale.

    Monitoring will be our accountability mechanism. Since our structural concerns have not been formally resolved, Yoroi intends to hold IO to refining its success metrics and coordination approach through the oversight process. A YES vote is not an endorsement of every element of the delivery design.

    Conclusion

    Yoroi votes YES. We are making this revision openly, acknowledging that the proposal is unchanged and that our prior concerns remain live. Our judgement is that supporting this initiative now, with active oversight, is more responsible than deferring again on grounds that may not be resolvable before the vote closes.

  • Yes435.8M ₳

    I vote YES for "IO: Developer Experience Initiative." Improving the developer experience is truly necessary, and I particularly appreciate the following four points: Based on demand research Defined targets for outcome KPIs (not process KPIs) A genuine...

    I vote YES for "IO: Developer Experience Initiative."

    Improving the developer experience is truly necessary, and I particularly appreciate the following four points:

    1. Based on demand research
    2. Defined targets for outcome KPIs (not process KPIs)
    3. A genuine cross-ecosystem collaboration model
    4. AI-enabled initiatives

    ーーー

    私は「IO: Developer Experience Initiative」にYESを投票します。

    開発者体験の向上は本当に必要であり、次の4点を特に評価しています。

    1. 需要調査に基づいている
    2. 成果KPI(not プロセスKPI)のターゲットが定義されている
    3. エコシステム横断の本気の協業モデル
    4. AIに対応した施策
  • Overview of EDC vote on IO + Tweag proposals: ❌ IO: Developer Experience Initiative ✅ IO: Cardano Upgrades ✅ IO: Consensus Initiative ✅ IO & Ensurable Systems: Cardano Maintenance Initiative ❌ IO & Midgard Labs: L2 Scalability Initiative ➖ IO: Cardano High...

    Overview of EDC vote on IO + Tweag proposals:

    ❌ IO: Developer Experience Initiative
    ✅ IO: Cardano Upgrades
    ✅ IO: Consensus Initiative
    ✅ IO & Ensurable Systems: Cardano Maintenance Initiative
    ❌ IO & Midgard Labs: L2 Scalability Initiative
    ➖ IO: Cardano High Assurance Technical Collaboration
    ✅ IO & VacuumLabs: Enhancing Plutus - Performance, Correctness, and Usability
    ❌ Blockfrost: Maintenance and Next Generation Indexing
    ❌ Pogun: Capital Without Compromise
    ❌ Tweag Core Cardano Infrastructure: Treasury Withdrawal 2026–2028
    ✅ IO: Cardano Vision 2026: Human Centred, Scalable, Post Quantum Secure - IO Research

    Combined:

    ✅ YES: 147.7m ADA / 35.5m USD
    ❌ NO: 74.0m ADA / 17.7m USD
    ➖ ABSTAIN: 13.1m ADA / 3.1m USD

    All proposed initiatives sound like nice-to-haves for Cardano; some are essential for Cardano's momentum. The asks on almost all of the proposals are too high. That's why we had to triage and prioritize the essentials over the nice-to-haves, allow for a remainder on the NCL, and leave room for other vendors to enter the race for this year's budget.

    We want to make it clear that a NO does not mean we are against the proposed tech. Quite the opposite, for example we'd love to look into Midgard and Pogun for Eternl. We also appreciate the work Blockfrost is doing, trying to replace itself with decentralized tech.

    But we need to leave some part of the NCL for other vendors and initiatives.

  • No120.2M ₳

    This document includes the Cardano Foundation’s voting decisions and individual voting rationales for nine Treasury Withdrawal governance actions submitted by Input Output Global. A PDF version of this rationale is also made available. We have decided to...

    This document includes the Cardano Foundation’s voting decisions and individual voting rationales for nine Treasury Withdrawal governance actions submitted by Input Output Global.

    A PDF version of this rationale is also made available.

    We have decided to create a unified document to record our votes as many of the initiatives are connected.

    We invite the proposers and anyone else from the Cardano Community to carefully review our individual rationales below per proposal, as well as the following table.

    Governance Action Title CF DRep Vote
    97. IO - Developer Experience Initiative NO
    98. IO - Cardano Upgrades YES
    99. IO - Consensus Initiative YES
    100. IO & Ensurable Systems - Cardano Maintenance Initiative ABSTAIN
    101. IO & Midgard Labs - L2 Scalability Initiative ABSTAIN
    102. IO - Cardano High Assurance Technical Collaboration YES
    103. IO & VacuumLabs - Enhancing Plutus - Performance, Correctness, and Usability NO
    104. Blockfrost - Maintenance and Next Generation Indexing NO
    105. Pogun - Capital Without Compromise YES

    Individual Rationales

    The following section contains all nine individual voting rationales for the above-mentioned proposals.

    97. IO - Developer Experience Initiative

    Summary

    The Cardano Foundation votes NO. We are eager to collaborate on DevX, but this proposal is expensive, lacks financial granularity, and risks duplicating ecosystem efforts. We encourage returning with a leaner, more detailed, and coordinated resubmission addressing the points as recommended below.

    Rationale Statement

    We recognize that developer onboarding is a critical vertical, and we appreciate the proposers targeting legitimate ecosystem pain points. While we fully support the overarching goals, we cannot approve this treasury withdrawal in its current form due to the following structural and financial concerns:

    1. Costs Lacking Granularity: The request for approximately 900k USD is exceptionally high for a 6-month timeframe. The budget lacks a meaningful Full-Time Equivalent (FTE) breakdown, allocating 81% to a broadly categorized "Development & Engineering" bucket. This makes it difficult to distinguish between community bounties, hackathon prizes, and administrative overhead, hindering our ability to evaluate financial proportionality.Creating CLI tooling, cleaning documentation, and building contract templates can be achieved in a cost-effective way which does not require a budget of this size.
    2. Overlap with Active CF and Intersect Initiatives: The proposal intends to restructure the "Developer HUB" using the Developer Portal as its primary entry point. The Developer Portal is already actively maintained, funded, and strategized by the Cardano Foundation alongside Intersect committees. While we are highly receptive to ecosystem contributions, requesting nearly 900k USD to duplicate or restructure ongoing work is inefficient. We would welcome collaboration on this workstream to improve cost efficiency.
    3. Severe Execution Risk: The proposal requests funding for only six months. The proposer indicates that the engineering team for these workstreams has not yet been established and will be hired using the funds released from this withdrawal. Setting up a new team and familiarizing them with the necessary ecosystem intricacies will conservatively consume a significant portion of this short timeframe, jeopardizing the delivery schedule. A future proposal would be significantly strengthened by establishing an upfront execution structure. Clearly identifying, aligning, and sharing ownership with ecosystem partners from the outset ensures precise accountability for all deliverables.
    4. Lack of Long-Term Ownership and Maintenance: There is no clear transition strategy for the resulting products (such as cardano-init or the contracts library) after the initial six-month funding period. The ecosystem requires continuous, ongoing feedback and maintenance for developer tools, rather than a highly expensive, short-term sprint that risks leaving behind abandoned infrastructure if subsequent funding is not secured.
    5. Open Source Fragmentation: While cardano-init is explicitly designed as an aggregation layer to unify and elevate existing ecosystem tools rather than replace them, its long-term value hinges heavily on sustained community buy-in. The proposal’s strategy for allocating bounties and incentives to existing tool maintainers is a strong step toward coordination. However, the primary risk shifts from community fragmentation to the execution of integrations: we must ensure that external toolmakers actively maintain these integrations over time so the aggregator remains a reliable, up-to-date entry point for new developers.
    Conclusion

    The Cardano Foundation votes NO. While the ambition to improve Cardano's developer experience is valued, this proposal's steep cost, execution risks, and overlapping scope prevent us from approving it in its current form. To secure approval, a resubmission must be leaner, more cost-effective and provide a granular FTE budget breakdown for financial transparency. It should also integrate with active Cardano Foundation and Intersect initiatives to avoid duplicating ongoing work, establish an execution structure with a pre-identified team to ensure delivery within the tight six-month window, and outline a strategy for long-term maintenance and community buy-in.

    98. IO - Cardano Upgrades

    Summary

    The Cardano Foundation votes YES. CIP-159, CPS-23, and Native Babel Fees have potential to improve L2 reserves, protect against volatility, and improve onboarding. Despite certain budget and execution concerns, we view the 13.1M ada ask as an acceptable investment.

    Rationale Statement

    We recognize the impact these three platform-level capabilities will have on Cardano’s economic models and ecosystem growth. We are voting YES based on the following technical and strategic assessments:

    1. Critical Infrastructure and Economic Resilience: The CIP-159 (Account Address Enhancements) upgrade bridges the gap between UTXO and Account models. By solving the minUTxO constraints, it enables micro-fee collection, cheaper DeFi batcher operations, and introduces new smart contract paradigms more familiar to EVM developers. Furthermore, it is a prerequisite for seamless L2 reserve management. CPS-23 (Multi-Asset Treasury) enables the Cardano Treasury to hold stablecoins or other native assets, which is a next step for long-term sustainability. It could protect the ecosystem's funding runway from ADA price volatility and introduce the potential for diverse treasury holdings.
    2. Native Babel Fees and Onboarding: While non-native (smart contract-based) Babel fees currently exist within the ecosystem, they have struggled to gain significant traction. Allowing users to interact with Cardano DApps using stablecoins or bridged assets without first acquiring ADA will hopefully be a driver for mainstream institutional and retail adoption.

    3. Feedback for Ongoing Alignment: While we support funding this initiative, there are elements of this proposal which raised concerns and we wish to offer feedback.

    Implementing CIP-159 fundamentally alters Cardano's accounting model. With alternative nodes like Amaru and Dingo actively in development, introducing such massive ledger changes requires careful coordination. Making frequent, significant modifications directly onto the Layer 1 core ledger introduces substantial maintenance fatigue for open-source builders, which can be lessened with coordination. We urge IO to collaborate to establish a clear framework for alignment with other node implementation and material downstream tooling teams to prevent consensus fragmentation.

    Workstream 2 allocates roughly $565,000 USD primarily to design and draft the Multi-Asset Treasury CIP. For a design-phase deliverable, this is a premium investment. We expect this effort to feature rigorous, high-quality deliverables, contributions to improvements to the overall CIP process and extensive community consultation to reflect the amount.

    Workstream 3 includes integration with the Lace wallet. Given the use of treasury funds, we expect the IO team to ensure that the underlying infrastructure for Native Babel Fees is open and easily accessible for all ecosystem wallets, Tx builders (e.g., Mesh, Lucid Evolution), and indexers, rather than focusing support solely on its own products.

    Although these concerns are valid, we appreciate the dialogue with IOG on this proposal which contributed to this voting decision.

    Conclusion

    The Cardano Foundation votes YES. The combination of Account Enhancements, a Multi-Asset Treasury, and Native Babel Fees represents a step forward for Cardano's scalability, developer experience, and economic sustainability.

    99. IO - Consensus Initiative

    Summary

    The Cardano Foundation votes YES. Leios is important for scaling Cardano and long-term competitiveness. Despite concerns over budget opacity and prior funding overlaps, delaying this upgrade risks ecosystem stagnation. We approve to ensure development continuity.

    Rationale Statement

    We recognize the impact that the Consensus Initiative (Leios) will have on the network’s capacity. We are voting YES based on the following technical and strategic assessments:

    1. Essential Base Layer Scaling: Scaling through Leios is fundamentally positive and provides Cardano with a massive upgrade. To ensure Cardano remains competitive with newer Layer 1 blockchains in terms of throughput, upgrading the base protocol is non-negotiable. This prevents the network from adopting unsustainable design patterns, such as forcing all high-volume activity to Layer 2 solutions.
    2. Core Infrastructure Investment: This proposal is a direct investment in the core protocol infrastructure. The Leios research phase has produced solid, academic-level work fully in the spirit of a peer-reviewed blockchain.
    3. Development Continuity: Leios development requires highly specialized knowledge. Voting NO at this critical juncture would risk halting momentum, meaning expert engineering teams would need to be replaced or re-assembled at a later date. Approving this proposal ensures the unbroken continuation of the roadmap toward the Dijkstra era.
    Conclusion

    The Cardano Foundation votes YES. We recognize that Leios is a credible path available to meet Cardano's 2030 scaling ambitions. While we have significant concerns regarding the insufficiently detailed, escalating budget, the risk of derailing base-layer scaling is too significant.

    100. IO & Ensurable Systems - Cardano Maintenance Initiative

    Summary

    The Cardano Foundation votes ABSTAIN. We appreciate the dialogue with IOG on this proposal, which contributed to our voting decision. While continuous maintenance is important for long-term network stability, this 62.1M ada proposal presents fiscal uncertainty and the scope appears to duplicate funding of other concurrent initiatives.

    Rationale Statement

    While the critical importance of keeping the network operating securely is undisputed, our evaluation reflects several material concerns regarding the current formulation of the proposal:

    1. Lack of Budget Detail/Potential Duplications: This proposal bundles nine maintenance workstreams into a single budget, grouping 74% (46M ada) of the funds into a broad "Development" category, which, without a granular Full-Time Equivalent (FTE) headcount breakdown, limits the capacity to verify cost efficiency. Additionally, given that the same development teams contribute across multiple initiatives, there appears to be a funding overlap with resources already requested in the Upgrades, Plutus, Consensus, and Developer Experience proposals. Providing a more detailed budget breakdown would help the community in conducting a clear cost-benefit analysis and ensure there is no duplication of funding.
    2. Lack of Quantifiable Deliverables: The proposal functions structurally as an open-ended funding commitment lacking defined technical boundaries, presenting a deficit of tangible deliverables, milestones, or open-source repository evidence mapping out the work. Without clear engineering baselines, it acts as an unquantifiable blanket retainer that challenges our ability to properly assess the proposal.
    3. Substantial Budget Inflation: The requested amount of 62.1M ada (approximately 14.9M USD) represents a high allocation of treasury resources. Industry baselines indicate that these costs are significantly inflated relative to the actual operational overhead required for equivalent DevOps and core maintenance tasks.
    4. Structural Preference for Targeted Initiatives: The Cardano Foundation maintains a clear structural preference for a modular funding framework wherever possible. Funding generalized blanket proposals introduces fiscal uncertainty, whereas smaller, targeted sub-proposals (such as specific consensus, developer experience, or scaling layer initiatives) feature transparent line-item budgets and clearly defined milestones that allow for rigorous milestone-based verification.
    5. Node Diversity Risks: To support a healthy multi-client ecosystem, overarching services such as global network monitoring and core documentation (e.g., the Cardano Blueprint) should be gradually decoupled from node-specific maintenance to ensure a completely product-agnostic and inclusive infrastructure landscape.
    Conclusion

    The Cardano Foundation votes ABSTAIN. We appreciate the critical nature of network maintenance and the expertise of the proposing teams. However, we require greater financial transparency, and a more node-agnostic approach to ecosystem tooling in order to properly assess this proposal. If this proposal does not reach the required approval threshold, we ask the proposers to refine and resubmit. A resubmission would greatly benefit from a decoupled structure, detailed FTE allocations, and an independent oversight mechanism to ensure verifiable and neutral delivery.

    101. IO & Midgard Labs - L2 Scalability Initiative

    Summary

    The Cardano Foundation votes ABSTAIN. While Layer 2 scaling is important for enterprise DApps, the proposal's lack of budget granularity, contested IP, and unresolved 2025 milestones introduce uncertainty. While we do not oppose this proposal, we urge a refined resubmission if it does not pass.

    Rationale Statement

    We support the technological objectives and the necessity of Layer 2 scaling, however we require further clarity regarding the following uncertainties before we are able to support:

    1. Unclear Scope and Structural Bundling: The proposal bundles two Layer 2 technologies at different stages of their respective product lifecycles into a single governance action. Furthermore, the financial distribution is skewed; despite being a titular focus of the initiative, the Midgard workstream receives only 9% of the allocated funding, while Hydra consumes approximately 73%.
    2. Milestone Accountability and Prior Deliverables: Midgard's 2025 funded milestones under contract EC-0001-25 were previously reported as past due and paused. While new evidence was submitted on May 19 to claim milestones 2–5, these submissions remain pending final verification. Committing additional treasury resources without a fully finalized reconciliation of past deliverables introduces significant fiscal uncertainty.
    3. Budget Granularity and Potential Overlaps: The 10.4M ada request lacks a granular breakdown. The technical scope for Workstream 2 (Hydra) closely mirrors the team's existing public roadmap and open pull requests, making it difficult to isolate net-new work from previously funded core engineering efforts. Additionally, the 1.8M ada requested for a bespoke Data Availability (DA) prototype does not sufficiently clarify why existing modular alternatives are unsuitable.
    4. Technical, IP, and Organizational Risks: The proposal contains contradictory timelines regarding the Midgard mainnet launch (end of 2026 versus Q1 2027). Subject Matter Experts (SMEs) also noted unresolved authorship and payment disputes (e.g., PR #434) that introduce contested-IP risks. Finally, the legal distinction and relationship between "Midgard Labs" and Anastasia Labs require clarification to ensure accountability.
    5. Unsubstantiated Metrics and Commercial Dependencies: Performance claims such as "10,000+ TPS" are presented without concrete benchmarking data or baseline metrics. Furthermore, the proposal relies heavily on specific commercial partners (like Delta DeFi and Masumi) continuing to build, without providing contingency plans. Ideally, commercial entities utilizing the stack for enterprise applications should contribute to the hardening of the infrastructure they rely upon.
    Conclusion

    The Cardano Foundation votes ABSTAIN. We appreciate the dialogue with IOG on this proposal which contributed to our voting decision. We value the technical ambition of this initiative and respect the engineering teams involved, but we cannot support this proposal in its current state without proper budget breakdowns, clarity on IP, and clear accountability for past milestones. If this proposal does not reach the required approval threshold, we ask the proposers to refine and resubmit their initiative.

    102. IO - Cardano High Assurance Technical Collaboration

    Summary

    The Cardano Foundation votes YES. Automating formal verification is a strategic public good that reinforces network security. Despite significant concerns regarding budget opacity and adoption risks, the ecosystem benefits outweigh the reservations.

    Rationale Statement

    We support this proposal because it aligns with Cardano's core value proposition of security, correctness, and determinism. Our YES vote is grounded in the following primary drivers:

    1. Strategic Digital Trust Infrastructure: Cardano’s underlying smart contract model, based on Lambda calculus and determinism, is uniquely positioned for formal mathematical verification. Recent high-profile vulnerabilities in EVM-based DeFi protocols, such as the ~$300M Kelp DAO exploit, highlight that verifiable security is a strict prerequisite for institutional adoption. This enables a shift away from high-risk environments toward highly secure, institutional-grade DeFi applications.
    2. Universal Ecosystem Support via UPLC: The proposed automated verification tool, Blaster, operates directly on Untyped Plutus Core (UPLC). This architectural choice is strategic, as it avoids siloed development and simultaneously supports developers across the ecosystem, regardless of whether they write in Aiken, Plutus, or other high-level smart contract languages.
    3. Lowering the Barrier to Entry: Historically, formal verification has been restricted to specialized experts. By providing a Lean4-based verification enabler, integrating it directly into native toolchains (e.g., VS Code), and offering extended "one-click" containerized developer environments, this initiative significantly democratizes access to production-ready, secure smart contract development.
    4. AI-Agentic Workflow Readiness: As software engineering transitions toward AI-assisted development, the emphasis on robust Command Line Interfaces (CLIs) within this proposal provides a strong, secure foundation for future integration with autonomous AI agents, ensuring Cardano's toolchain remains forward-looking.
    5. Reusable and Auditable Components: The initiative focuses on d
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