₳70,000,000: Cardano Proposes 2026 Budget Following Chain Split Incident
Cardano’s key founding entities have proposed a 70 million ADA governance budget, seeking approval from the network’s treasury to fund major infrastructure integrations as the blockchain rebounds from a recent chain split.
This proposal comes at an important juncture for the Cardano ecosystem. The network recently demonstrated resilience after resolving a disruption caused by an AI-generated malformed transaction earlier this month.
Critical Infrastructure Funding Targets 2026 Ecosystem ExpansionThe Cardano Critical Integrations Budget proposal unites Input Output, EMURGO, Cardano Foundation, Intersect, and the Midnight Foundation.
Their goal is to address gaps that limit Cardano’s scaling. The 70 million ADA allocation would support tier-one stablecoin integrations, institutional-grade digital asset custody, cross-chain bridges, pricing oracles, and on-chain analytics platforms.
These integrations are designed to enhance Cardano’s DeFi ecosystem, attract institutional investors, and drive real-world asset tokenization. While discussions have occurred with integration partners, the proposal’s advancement depends on community approval through Cardano’s governance system.
Intersect will administer the initiative, ensuring transparency and accountability. Approval is required from both Delegated Representatives (DReps) and the Constitutional Committee, crucial components of Cardano’s decentralized governance.
According to documentation, Cardano’s treasury holds about 1.7 billion ADA and receives approximately 25.92 million ADA monthly through protocol mechanisms.
Community members are scrutinizing the proposal’s actual cost. Some suggest the total expense could surpass the requested sum by a wide margin.
Given all the different numbers that I've seen floated around, I personally suspect that in-all this roster of superpowers will cost way more, maybe double or triple what is being asked for.
I assume that means that the founding entities have some agreement to cover the rest of… https://t.co/XY8CN63Sa2
The post also speculated that founding entities might cover extra costs out of pocket, a detail that voters should weigh. This debate highlights the complexity of budgeting for major integrations that involve diverse partners.
Network Demonstrates Resilience After AI-Triggered Chain SplitThe budget proposal follows Cardano’s swift recovery from a chain split on November 21. This incident was triggered when a malformed transaction, created by AI tools, briefly disrupted network consensus.
The issue arose during testing by a developer known as Homer J, who exploited a bug that allowed an oversized hash to bypass transaction validation.
While many wallets and dApps became temporarily inaccessible, block production was not interrupted. Pool operators quickly updated node software, restoring consensus and merging chains.
Cardano founder Charles Hoskinson stated the technical fix was in place within a day and raised the prospect of further action regarding the exploit.
Industry recognition followed. Solana co-founder Anatoly Yakovenko praised Cardano’s Ouroboros protocol for sustaining network stability through the event.
I am gonna go out on a limb and actually say this is pretty cool. Nakamoto style consensus without proof of work is extremely hard to build. The protocol functioned as designed in the presence of bugs. https://t.co/K3WO0BE7Cf
— toly