Cardano’s delegated representatives have voted against a proposal to allocate 12.29 million ADA from the community treasury toward Input Output’s Pogun Bitcoin DeFi initiative. The final Koios results showed 35.67% of DRep voting power in support and 64.33% against the proposal.
The rejected request means the ADA will remain in Cardano’s treasury. However, the network also loses the revenue-sharing arrangement that Input Output had offered in return for the funding. Charles Hoskinson later said IOG would stop automatically choosing Cardano as the launch network for its future products.
Pogun is designed to bring Bitcoin-based assets into decentralized finance through a lending market, a yield product, and a trust-minimized bridge powered by BitVM. Input Output’s proposal sought 12.29 million ADA and linked repayment to quarterly EBITDA, using $2.95 million as the reference figure.
Under an April 2026 proposal from Input Output, 20% of Pogun’s earnings would have been directed to the Cardano treasury until the original funding was repaid. After repayment, the treasury would have received a continuing 5% share of revenue from Cardano-related products. The on-chain proposal submitted to governance, however, did not include an explicit exclusivity clause.
Cardano’s governance framework requires both the Constitutional Committee and DReps to approve treasury spending. The Constitutional Committee unanimously backed the Pogun proposal, but DReps, who are elected by ADA holders, voted it down. The contrasting decisions highlight the role of delegated governance in determining how Cardano’s treasury is used.
For Cardano, the immediate outcome is that its treasury keeps the 12.29 million ADA while giving up the potential revenue stream tied to the proposed deal. The financial difference could become relevant to discussions around the sustainability and future use of the community treasury.
The decision is also notable because Input Output was one of the organizations involved in Cardano’s development and remains a significant contributor to its ecosystem. Pogun’s proposal argued that Cardano was technically suited to host the Bitcoin DeFi product, but it did not make Cardano the automatic choice. DReps ultimately rejected the funding terms presented to them.
Hoskinson addressed the decision in a Sept. 18, 2026, broadcast, saying IOG would evaluate each blockchain based on the needs of the individual product rather than automatically prioritizing Cardano. He added that products without Cardano funding could potentially operate on another network, while an alternative ecosystem could receive exclusivity in return for supporting development.
Hoskinson nevertheless continued to describe Cardano as a strong technical fit for Bitcoin DeFi, particularly for applications designed to interact with Bitcoin-style transaction-output systems. His comments suggest a shift in how IOG approaches product deployment rather than a complete break with Cardano.
Cardano’s Next Developments
Hoskinson said Pogun is still expected to launch within 90 days of his Sept. 18 broadcast, putting the target around mid-December 2026. Input Output has yet to disclose which blockchain will host the product, leaving open the possibility that another ecosystem could benefit from Pogun’s eventual revenue.
Meanwhile, Hoskinson said RealFi, another Input Output project, is scheduled to launch on Cardano in October 2026. That release will provide another upcoming development for ADA holders following the rejection of the Pogun treasury proposal.
