Voters in the Cardano Community voted to approve a new $710,000 upgrade for the Cardano Network. The Treasury proposal will fund major network upgrades and unlock 96 million ADAs. It is about 13% of Cardano’s total finance ministry. The proposal was approved in 74% of votes.
This is also the first for the ecosystem, with core development funds being approved directly by the community, and a major step forward in Cardano’s decentralized governance model. “This vote of trust allows us to move forward with full transparency, shared responsibility and a new commitment to creating an open and resilient ecosystem,” he added. Following the vote, Cardano founder Charles Hoskinson also thanked the community for its support and trust, simply saying, “Let’s get it done.”
This funding will be a power upgrade aimed at improving interoperability, scalability, and developer experience. Additionally, the upgrade reduces transaction costs from 0.34 ADA ($0.25), improves throughput, and addresses important barriers to Defi adoption. The testnet is likely to be released next month or two months, and can be accessed by Cardano network users to confirm the upgrade.
Does Cardano upgrade send ADA higher?
This year, several other major crypto platforms have increased their capabilities and have climbed to native cryptocurrency. Solana increased its block capacity by 20% in July, but Ethereum increased its gas limit and launched the Pectra Hard Fork in May. Fusaka, the next Ethereum upgrade, is set for the second half of 2025.
Cardano’s native cryptocurrency, ADA, rose 2.5% on Monday after its announcement. Coin has slumped to 7.8% in the past week, but has risen by more than 20% over the past 30 days. Last week, Crypto Market entered a slightly bearish period, highlighting Bitcoin falling below $116,000. The market is hoping for a rebound this month, possibly led by Ethereum’s continued gathering and crypto ETF approval.