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The plan seeks to finance oracles, bridges, wallets and on-chain analysis still absent in Cardano.
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The vote is now operational and is in favor of the proposal.
Intersect, the organization that coordinates the governance of the Cardano ecosystem, presented this November 27 an initiative to finance different integrations within the network.
The proposal, called the “Critical Integrations Budget,” calls for withdrawing 70 million ADA ($30 million at current price) from on-chain treasurythe Cardano community pool that resides entirely on the network and can only be mobilized by voting.
The objective is to finance a new operating fund aimed at deploy infrastructures that do not exist today on Cardano and that would be necessary to expand its economic and technical capacity.
The initiative, which is added to other similar ones already approved, aims to promote different narratives of the ecosystem. For example, stablecoins and decentralized finance (DeFi), real-world assets (RWA) and different applications by integrating providers that operate at an institutional level.
A fund to boost stablecoins on Cardano
According to the proposal, the financing will be allocated for the following:
Establish a strategic integration fund to incorporate critical infrastructure, including top-tier stablecoins, institutional custody of digital assets, on-chain analytics platforms, cross-chain bridges, and price oracle networks.
Budget Document for Critical Integrations.
These elements allow a network to operate with external capital, stable liquidity and tools for developers, institutions and users.
For example, increasing the presence of “top-tier” stablecoins would lead to financial applications having a stable and predictable means of payment. However, they did not specify what a “top-tier” stablecoin is.
To achieve this increase in stablecoins, Cardano first needs another infrastructure: data oracles, bridges that connect with other chains and custody providers adapted to institutional standards.
The text of the initiative adds with respect to that infrastructure:
It establishes the foundational layer needed to incorporate world-class stablecoins and unlock exponential growth in DeFi transaction volume.
Budget Document for Critical Integrations.
On Cardano, as on any network, the trading volume depends on there being reliable price data, interoperable liquidity and tools that offer applications ease of use.
On the other hand, the fund promoted by Intersect also promises to accelerate the development of sectors such as world assets (RWA) and DePin (decentralized physical infrastructure networks).
Both require external data and verifiable processes that today Cardano cannot offer completely, as indicated.
What problems is Cardano trying to solve with this fund?
The proposal indicates that the platform «lacks several critical integrations necessary for large-scale economic activity and to attract external liquidity.»
In addition to stablecoins, among the shortcomings, the following stood out:
- Custody and wallets institutional– Businesses need tools to safely custody funds and manage assets. Wallets with support for different chains and advanced features allow new users to enter without technical barriers.
- On-chain analysis platforms: They offer real-time data that allows you to study liquidity, risks or activity patterns. They are essential for auditors, compliance teams, developers and institutions.
- Bridges between chains: They connect Cardano with other blockchains. Without them, the ecosystem is isolated and cannot access capital and external users.
- Price Oracles– Feed applications with verified external data. Although Cardano has native providers, according to the proposal, it still “lacks an institutionally recognized price oracle provider.”
The absence of all these elements directly impacts financial activity.
The proposal states that, if Cardano does not accelerate the incorporation of these infrastructures, it runs the risk of being left behind in the competition for attracting institutional-scale applications, liquidity and integrations.
Cardano Fund Voting
Currently, the votes of the DReps (delegated representatives of ADA holders) they lean in favorwhile pool operators (SPO) have just begun to participate. The votes of the Constitutional Committee (CC) also remain, which closes the tricameral model that directs the governance of Cardano.
The proposal will advance only if the current vote (which closes on December 30) obtains a favorable result. That will be the decisive step to authorize the withdrawal of the 70 million ADA from the treasury.
Finally, this vote occurs in a Cardano’s complex governance frameworkgiven that, as NoticiasVE explained, on November 8, one of the seven members of the Constitutional Committee announced his voluntary departure from that role, which took effect on November 25.