Cardano Foundation Resets Community Funding Model, Analyzing Influence on ADA - U.Today

ADA4,54%
XRP5,26%
BTC7,16%
ETH8,05%

As was officially announced, the Cardano Foundation is going to take over stewardship of Project Catalyst from Input Output Global, which could be one of the biggest changes in the Cardano ecosystem in recent years.

Before, IOG, the protocol’s main development company, was in charge of handing out the grants. Catalyst, Cardano’s on-chain funding engine, has supported over 2,200 projects and currently handles over 500 active grants

How could Catalyst overhaul influence ADA?

During the transition, team members will move to the foundation to maintain continuity through Fund14. Fund15 and Fund16 have been canceled, and the ADA allocated to those rounds will go back to the treasury with Intersect.

HOT Stories

Morning Crypto Report: Mr. XRP Yoshitaka Kitao Predicts 2026 On-Chain Revolution, Bitcoin in ‘Not Digital Gold’ Period: CryptoQuant CEO, Ethereum Foundation to Stake 70,000 ETH

Bitcoin Breaks Below Critical $63,000 Support

From a regulatory perspective, if a single commercial entity has a smaller operational role, it supports the idea that Cardano governance is decentralized instead of being directed by one private company. In jurisdictions examining token classification, the difference between development and ecosystem funding is important.

From a financial perspective, giving back unallocated ADA to the treasury puts a limit on how much of the token will be distributed in the near future through grants. A lot of grantees convert Cardano tokens to fund operations, which adds to the market supply. Pausing two funding rounds changes the internal liquidity cycle.

Finally, strategically, the shift indicates a more strict approach to managing capital. Catalyst has gotten some criticism for supporting a bunch of small projects that do not always have a clear, measurable impact

The foundation has shown that it is okay with a mix of new ideas coming from the ground up and also being used by big companies and organizations. This suggests that they are going to be more picky about who they accept and keep a closer eye on progress.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Japan and South Korea stock markets rebound » Phantom Wallet launches BlackRock Japan and South Korea ETF perpetual contracts, with up to 20x leverage

Phantom Wallet announces the addition of ETF perpetual contract trading for Korea and Japan, allowing users to participate in long and short trading in the Japan-Korea markets with up to 20x leverage. Users can operate directly within the wallet without the need for external platforms. These ETFs are issued by BlackRock and track the main indices of Korea and Japan respectively.

動區BlockTempo8m ago

X Money launches limited test "Deposit to earn 6% annual interest," Star Wars Shatner bids $1000 for an invitation letter

Elon Musk's payment app X Money launches external testing this week, offering a 6% annual interest rate on deposits and FDIC insurance coverage, challenging traditional banks and PayPal. Users can receive a Visa metal card with their name on it and cashback rewards. Additionally, X Money plans to gradually integrate cryptocurrencies, although no concrete actions have been taken yet.

動區BlockTempo14m ago

Ethereum Foundation: Ethereum's AI strategic goal is to become the coordination and verification layer of the AI world

Ethereum Foundation AI Director Davide Crapis stated that Ethereum's goal is to become the coordination and verification layer for AI, emphasizing the importance of decentralization and privacy. Ethereum's AI strategy focuses on decentralized AI coordination and bringing core values into the AI space to protect user data and identities.

GateNews39m ago

Pi Network price hits two-week high, protocol upgrade drives 8.5% increase

Pi Network's native token PI rose about 8.5% on March 4th, reaching a nearly two-week high, following the successful upgrade to protocol v19.9. The upgrade aims to strengthen network capabilities and will introduce v20.2 before Pi Day 2026. Despite the short-term increase, the Pi Foundation transferred 60.99 million tokens, which could trigger supply pressure. Technically, PI faces a key resistance level at $0.173.

MarketWhisper41m ago

Base designates AI Agents and robots as the next frontier of technology, calling on developers to join.

The AI agent platform of the Base ecosystem, Virtuals Protocol, has launched the "Base Batches 003: Robotics" project, aimed at promoting the development of AI agents in the robotics field, supporting the establishment of robot agents and related workflows. Successful applicants will receive mentorship guidance and up to $50,000 in funding, and will participate in the San Francisco Demo Day.

GateNews51m ago

Byreal open-source AI agent skills, supporting on-chain trading, position management, and strategy replication

Solana Protocol Byreal has open-sourced the on-chain interaction tool designed specifically for AI Agents, byreal-cli, supporting core functions such as liquidity pool queries and Token Swap. It is compatible with over 40 AI Agent frameworks, making it easy to use with a single click.

GateNews57m ago
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)