Cardano Foundation Proposes $40.5 Million Liquidity Fund to Boost DeFi Activity
The Cardano Foundation has put forth a proposal to allocate 50 million ADA, equivalent to about $40.5 million, towards a new liquidity fund. The aim of this fund is to enhance stablecoin adoption and DeFi activity on the Cardano network.
The Foundation emphasized the critical need for deeper liquidity within the blockchain ecosystem. By increasing the supply of stablecoins on the network, Cardano adoption could be accelerated, and a sustainable revenue source for the treasury could be established.
According to the Foundation’s statement, this proposal is not just about deploying treasury funds for the benefit of the Cardano blockchain but also aims to create additional ecosystem benefits.
Estimates suggest that the liquidity fund deployments could potentially yield around 4% annually to the treasury based on the relationship between trading volume and total value locked (TVL). With increased liquidity, trading volumes are expected to rise, leading to more sustainable yields for the network.
The revenue generated from these protocols would be divided, with 15% being converted to ADA and returned to the treasury monthly, while the remaining 85% would be reinvested in protocols to facilitate growth.
New Roadmap for Cardano
In addition to the liquidity fund, Cardano’s eighth-anniversary roadmap outlines several key initiatives. The Foundation plans to expand its Web3 adoption team to focus on exchange integrations, tokenized asset partnerships, and enterprise use cases.
By 2026, Cardano aims to commit 2 million ADA (approximately $1.62 million) to its Venture Hub program, which supports startups through collaborations with Draper University, Techstars, and CV Labs. The goal is to ensure the sustainability of Cardano projects in the Venture Hub by providing various forms of support, including investments, technical advisory services, and integration assistance.
Cardano is also set to delve further into real-world asset (RWA) tokenization. The Foundation has already piloted tokenized finance with $10 million in real-world assets alongside Members Cap. Future plans involve establishing formal standards for RWA issuance and integrating Cloudflare’s x402 payments framework through Masumi Network.
Enhanced Marketing and Governance
Recognizing the importance of visibility in light of regulatory changes and competitive pressures, Cardano plans to increase its marketing budget by 12% in 2026. This budget boost will support inbound content, paid media campaigns, and participation in global events to showcase the blockchain’s capabilities.
The Foundation intends to maintain a strong presence at major industry gatherings such as TOKEN2049 and Consensus while hosting community-driven events like the Africa Tech Summit 2026 and the Digital Asset 2026 conference in London.
Moreover, Cardano aims to expand the number of active governance participants shaping the network’s future. To achieve this, the Foundation will delegate 220 million ADA to eleven new Adoption and Operations DReps, while reducing its self-delegation to 80 million ADA. This move builds on the success of delegating 140 million ADA to seven Builder Delegated Representatives (DReps).
In conclusion, Cardano’s roadmap for the future is ambitious and comprehensive, with a strong focus on enhancing liquidity, fostering innovation, and strengthening governance. These initiatives are poised to propel Cardano towards greater adoption and success in the ever-evolving blockchain landscape.