The Cardano Foundation has initiated a pivotal community vote to withdraw 50 million ADA (worth approximately $13.66 million at current prices) from the Cardano Treasury. This withdrawal represents the first tranche of funding for the newly proposed Orion Venture Fund, a $80 million initiative managed by the venture capital firm Draper Dragon.
The fund aims to invest in startups building on the Cardano network over the next six years, with the goal of developing, strengthening, and expanding the ecosystem. The Cardano Treasury is slated to contribute $75 million of the total capital, with the remaining $5 million coming from outside qualified investors. The proposal outlines a total cap of 175 million ADA for Treasury withdrawals, though its current dollar value of $47.8 million falls short of the $75 million target due to market fluctuations.
"We support this proposal, which asks the Community to vote on this first tranche," stated the Cardano Foundation via social media. The voting period is open until April 15, 2026. Unlike traditional grants, the Orion Fund is structured as a professional venture vehicle, with profits from investments intended to be returned to the Cardano Treasury to create a self-sustaining investment engine.
The fund's strategy includes direct investments in high-potential ventures, providing access to tier-1 exchanges, global marketing, liquidity provision, and establishing a growth accelerator for educational support. The initiative has garnered support from key ecosystem figures like Kris Kowalsky of Intersect, who views Draper Dragon's involvement as a "sign of trust, will, and positivity for Cardano." However, some community members have raised questions about the selection of Draper Dragon and called for enhanced oversight to ensure accountability and clear return metrics.
