Cardano founder Charles Hoskinson has rejected a proposal suggesting a $50 million loan for Input Output Global (IOG) as an alternative to tapping the ADA treasury for development funding. The idea, floated by a Cardano commentator named Joe, argued that external financing could reduce reliance on the ADA treasury and limit selling pressure on ADA tokens. Joe questioned why developers continue to use community funds instead of traditional financing options, stating: 'Putting risk on holders instead of devs' creates an imbalance. He added that developers maintain a steady income while holders face exposure to funding risks.
Another community member, Nicholas, supported the loan idea, pointing out that other crypto teams have taken loans and repaid them early, with some projects locking tokens to show confidence in long-term value. Hoskinson initially asked for clarification before dismissing the proposal entirely, replying: 'This has to be a joke.' His response indicated strong disagreement with the suggestion and its underlying assumptions.
The debate centers on how Cardano uses its treasury system, which collects funds from network fees and operates under ADA holder governance. Critics argue that treasury usage can increase token selling pressure, while supporters defend it as a core part of decentralized governance that enables community participation in funding decisions without reliance on external institutions.
Input Output Global recently adjusted its 2026 funding request to $46.8 million across nine plans, down from the previous $97.5 million request. The revised proposals focus on scaling and new applications within the Cardano ecosystem. A key upgrade called Leios aims to increase throughput up to 65 times, potentially pushing transaction capacity beyond 1,000 transactions per second. Another initiative named Pogun seeks to introduce Bitcoin-based decentralized finance on Cardano, enabling users to earn yield or borrow against BTC without intermediaries. IOG stated it plans to reduce reliance on treasury funding over time, expecting smaller teams to take on more development responsibilities by the end of 2026.
