U-Turn In Cardano Governance: Foundation Backs Key Funding

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure The Cardano Foundation has reversed its position on a contentious treasury withdrawal, switching its DRep vote to “YES” for funding a free Native Asset Content Delivery Network (CDN) for Cardano developers. In a post on X on August 15, the Foundation wrote: “After careful consideration, the Cardano Foundation DRep has changed its vote to YES on the Treasury Withdrawal to fund a free Native Asset Content Delivery Network (CDN) for Cardano developers,” adding that its initial “No” had been rooted in “financial and funding concerns,” which were addressed by new information from the applicant team.”

Cardano Foundation Gives Green Light To Key Funding

The full rationale, posted to IPFS, makes the pivot explicit and anchors it in concrete numbers and implementation detail. The governance action—“Withdraw ₳605,000 for A free Native Asset CDN for Cardano Developers”—would underwrite 18 months of no-cost access to NFTCDN’s infrastructure for every Cardano builder.

According to the Foundation’s document, the service “solves a complex and expensive problem for builders” and is already used by projects including the Eternl and Vespr wallets. The rationale says the team supplied a clarified budget “for salaries and infrastructure costs based on current usage patterns,” which directly addressed the Foundation’s earlier reservations.

Related Reading: Grayscale’s Cardano ETF Move and Record Holder Surge: Analysts Optimist on ADA’s FutureCrucially, the Foundation frames the 18-month subsidy as a data-gathering runway to decide among three long-term paths once usage and cost curves are known: open-sourcing the stack, decentralizing the service, or transferring ownership to a non-profit.

It also notes that while it initially viewed Project Catalyst as a more appropriate venue, the applicant demonstrated “no appropriate funding category exists in Catalyst for this type of infrastructure,” warranting a Treasury Withdrawal instead. “We now consider this proposal to be a suitably justified, strategic investment in public infrastructure,” the document concludes.

The vote change lands within Cardano’s broader 2025 governance cycle, which includes a suite of 39 Treasury Withdrawal proposals derived from the Intersect-administered ecosystem budget process (approximately ₳275 million). The Foundation has emphasized transparent DRep decision-making and published running summaries of its votes and governance workstreams.

Related Reading: Cardano Hits New Milestone As Grayscale Moves Forward With ETF ApplicationFor developers and integrators, the immediate headline is operational rather than political: if enacted, the measure would eliminate near-term CDN costs for native asset rendering and metadata delivery across wallets, explorers, and dApps—costs that smaller or non-profit teams have struggled to absorb.

The applicant’s public forum posts describe the service as an infrastructure-as-a-service layer that has already handled hundreds of millions of API calls, and outline the intent to use the funded window to quantify demand and right-size infrastructure for the long-term model the community ultimately prefers.

Governance traceability is straightforward. The Foundation’s DRep identifier can be checked on public explorers for a record of the vote and attached metadata; the governance action itself is listed among current Treasury Withdrawal items on explorer dashboards. The Foundation also maintains a governance portal that consolidates its voting approach, meeting notes, and identifiers for both its DRep and Constitutional Committee roles.

At press time, ADA traded at $0.94.

ADA surpasses key resistance, 1-week chart | Source: ADAUSDT on TradingView.comFeatured image created with DALL.E, chart from TradingView.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.