The Cardano ecosystem has greenlit a major treasury expenditure of 96 million ADA (approximately $71 million) to advance critical network infrastructure through its decentralized governance process. This allocation, supported by 74% of 213 participating votes, will fund development of the Hydra scaling solution and Project Acropolis.
Hydra operates as a Layer-2 protocol designed to dramatically accelerate transaction processing while reducing costs. By creating ‘Hydra heads’ – off-chain channels that batch transactions – the solution maintains Cardano’s security guarantees while enabling high-throughput applications at minimal fees.
Simultaneously, Project Acropolis aims to revolutionize Cardano’s core architecture by modularizing its node implementation. This technical overhaul will streamline developer onboarding, permit more flexible upgrade pathways, and accelerate deployment of future network enhancements.
Both initiatives target measurable improvements in user experience and network performance, with focused goals to strengthen Cardano’s appeal for institutional adoption. The funding approval underscores Cardano’s community-driven governance model, where ADA holders directly vote on treasury allocations for ecosystem development priorities.