Cardano Summit canceled after 7.8M ADA treasury proposal falls short

The Cardano Foundation has canceled its October summit after a proposal seeking 7.8 million ADA, worth about $1.84 million, failed to secure the two-thirds approval required from the network’s governance community.

In a statement posted on X after voting closed on Friday, the Cardano Foundation said the community had made its decision and that it would respect the outcome. 

Although 65.2% of votes supported the proposal, the result fell short of the 66.67% threshold needed for approval.

Scheduled for Oct. 5 and 6 in Singapore, the Cardano Summit was set to serve as the ecosystem’s flagship annual conference. Voting records showed 135 participants backed the proposal, while 61 opposed it and 24 abstained.

Coming just weeks after another summit funding request was rejected, the outcome adds to a growing debate over how Cardano’s treasury should be used and who should decide where community funds are spent.

DReps continue push for tighter treasury controls

Cardano’s delegated representatives, known as DReps, have previously voted against a separate proposal that sought roughly 14 million ADA to support the same event. Only 10% of DReps supported that request, prompting the Cardano Foundation to return with a revised proposal asking for a smaller amount.

Under Cardano’s governance model, ADA holders can delegate their voting power to DReps, who participate in treasury and policy decisions on behalf of token holders.

The latest vote follows months of disagreement between Cardano founder Charles Hoskinson and parts of the governance community over spending priorities. 

In May, Hoskinson announced a review of more than 11,000 decentralized autonomous organizations and governance systems, saying the effort would examine executive functions, roadmap control, strategic decision-making, and budget oversight.

At the time, Hoskinson said the research could lead to governance changes through Cardano’s constitution process and future technology upgrades. He also indicated that he may become a DRep himself and host a mini-convention ahead of the network’s 2027 constitutional discussions.

Questions around treasury spending have also surfaced in a separate vote on a 32.9 million ADA proposal to fund Input Output Global’s research lab. As previously reported, many DReps have argued that treasury-funded initiatives should include clearer milestones and more competitive funding processes instead of direct renewals.

Cardano will appear at TOKEN2049

Despite the summit cancellation, EMURGO, the commercial and investment arm supporting the Cardano ecosystem, secured approval for a proposal to represent Cardano at the TOKEN2049 conference in Singapore on Oct. 7 and 8.

At the same time, Hoskinson has been assessing community interest in expanding Cardano’s presence at the event through a larger booth and a possible “embedded MiniSummit.”

The governance debate comes as ADA price continues to struggle. As previously reported by crypto.news, the token has been trading near key support levels which, if not reclaimed, could push price lower.