Intersect, the organization that coordinates the governance of the Cardano ecosystem, announced on November 27 of this year an initiative to fund various integrations within the network.
The proposal, called a “significant consolidated budget,” has been called for to be withdrawn. 70 million ADA ($30 million at current prices) from on-chain treasurya Cardano community pool that exists entirely on the network and can only be mobilized by voting.
The purpose is to raise new operating funds for the following purposes: Deploy infrastructure to Cardano that doesn’t currently exist And it is necessary to expand economic and technological capabilities.
This initiative is in addition to other similar initiatives already approved and aims to: Promoting different stories in the ecosystem. Examples include stablecoins, decentralized finance (DeFi), real world assets (RWA), and various applications by integrating providers operating at an institutional level.
Fund to increase Cardano stablecoin
According to the proposal, funds will be allocated to:
We will establish a strategic integration fund to incorporate critical infrastructure such as a top-of-the-line stablecoin, institutional custody of digital assets, an on-chain analytics platform, a cross-chain bridge, and a price oracle network.
Budget documents for important integrations.
These elements enable us to operate our network with external capital, stable liquidity, and tools for developers, institutions, and users.
For example, the growing presence of “top-of-the-line” stablecoins will allow financial applications to have a stable and predictable means of payment. However, he did not specify what the “top-of-the-line” stablecoin would be.
To achieve this increase in stablecoins, Cardano will first need another infrastructure. Data oracles, bridges that connect with other chains and storage providers that adapt to institutional standards.
Regarding its infrastructure, the text of the initiative adds:
It incorporates a world-class stablecoin and establishes the foundational layer needed to enable exponential growth in DeFi transaction volumes.
Budget documents for important integrations.
As with other networks, on Cardano the transaction volume is Reliable price data, interoperable liquidity It also includes tools that provide ease of use for the application.
Meanwhile, the fund promoted by Intersect also promises to accelerate the development of areas such as global assets (RWA) and DePin (decentralized physical infrastructure network).
both are required External data and verifiable processes As shown, today Cardano cannot fully deliver.
What problem is Cardano trying to solve with this fund?
The proposal shows that the platform “lacks some key integrations needed to attract large-scale economic activity and external liquidity.”
In addition to stablecoins, the following drawbacks stood out:
- custody and wallet institutional– Businesses need tools to safely store funds and manage their assets. Wallets that support a variety of chains and advanced features allow new users to enter without any technical barriers.
- On-chain analytics platform: Provides real-time data that allows you to study liquidity, risk, and activity patterns. These are essential for auditors, compliance teams, developers, and institutions.
- bridge between chains: Connect Cardano with other blockchains. Without these, the ecosystem becomes isolated and inaccessible to capital and external users.
- price oracle– Feed validated external data into your application. According to the proposal, Cardano has a native provider but still “lacks an institutionally recognized price oracle provider.”
The absence of all these factors directly affects financial activities.
The proposal states that if Cardano does not accelerate the incorporation of these infrastructures, Cardano will be executed. Risk of being left behind in competition To attract institutional-scale applications, liquidity, and consolidation.
Cardano Fund Voting
Currently, DReps (ADA Holder Representatives) votes they are leaning in favorwhile pool operators (SPOs) are just beginning to participate. A Constitutional Commission (CC) vote remains, ending the tricameral model that governs Cardano.
The proposal will only move forward if there is a positive result in the current vote (deadline 30 December). that will be a decisive step Approves the withdrawal of ADA 70 million from the national treasury.
Finally, this voting is done as follows: Cardano’s complex governance frameworkgiven that, as explained by CriptoNoticias, on November 8th one of the seven members of the Constitutional Commission announced his voluntary resignation from his role, which took effect on November 25th.
(Tag Translation) Blockchain
