Cardano Treasury Approves Ambitious Scaling and UX Upgrades

A host from a recent Cardano governance recap video highlights that the network has finalized a pivotal set of treasury proposals, signaling a decisive shift toward core upgrades.

With Input Output’s (IO) key submissions secured, Cardano is prioritizing an aggressive agenda focused on scalability, developer tools, multi-asset treasury frameworks, and foundational research—all funded through the on-chain treasury.

Cardano Laos Scaling Initiative Targets 10–60x Throughput Growth

The initiative, described by Linda a.k.a CryptoFly, centers on IO’s “consensus initiative,” which leverages Laos—a scaling protocol—to advance Cardano beyond testnet functionality and toward mainnet preparedness.

The proposed upgrade aims to achieve a 10- to 60-fold increase in transaction throughput via parallel processing during block synchronization—a phase currently underutilized but vital for long-term scalability.

The YouTube video emphasizes that this enhancement maintains decentralization while managing stake pool operator (SPO) costs, addressing concerns over rising resource demands as network capacity expands.

Laos builds upon Ouroboros Praos without replacing it, framing the work as an organic evolution of Cardano’s consensus mechanics.

Multi-Asset Treasury, Babel Fees, and Developer Tooling Approved

A consolidated “Cardano Upgrades” proposal secured funding for three key components: CIP-159 address enhancements to streamline small payments and enable new monetization avenues for wallets and aggregators; a framework for a multi-asset treasury allowing reserves and budgeting in assets beyond ADA, including stablecoins; and revised Babel fee mechanisms.

Babel fees will enable users to settle transaction costs in non-ADA assets, such as BTC or gaming tokens, without ADA collateral—a departure from the current FluToken system.

On the developer front, funded projects will enhance security via expanded formal verification tools for smart contracts, integrate vulnerability analysis, and support multiple programming languages for Plutus-based contracts.

Initiatives to improve developer experience include simplified onboarding, optimized Plutus execution costs, and collaborations with teams like Midgard Labs, TX Pipe, and Harmonic Labs to speed up contract deployment.

A dedicated maintenance program also received funding to address critical backend tasks: bug resolution, infrastructure upgrades, and security audits—ensuring the network’s operational resilience.

Long-Term Research Focuses on Scaling, UX, and Post-Quantum Security

The “Cardano Vision 2026” research proposal, approved by the treasury, allocates resources to a strategic pipeline across three domains: scalability (including layers, L2 infrastructure, zero-knowledge proofs, data availability, and sharding); user experience (light clients, decentralized APIs, intent-driven transactions, and Babel fee integration); and security (including post-quantum cryptography).

The research will also explore stake pool incentives as SPOs expand to support new services like Mithril and future layers, alongside interoperability efforts (bridges, atomic swaps), decentralized identity solutions, and governance reforms.

CryptoFly frames this as positioning Cardano for a future where “security demands, user needs, and the blockchain landscape will differ significantly from today’s reality.”

The treasury has now aligned on a clear trajectory: scaling the network, simplifying development, diversifying treasury funding beyond ADA, and prioritizing rigorous security practices while reserving resources for long-term bets on L2s, cross-chain solutions, and quantum-resistant protocols. Execution remains a challenge, but the governance round has set a structured path forward.

Lao’s inclusion of parallel processing during block propagation represents a critical architectural shift, potentially unlocking Cardano’s full throughput potential while preserving its decentralized ethos.

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