Cardano Foundation Resets Community Funding Model, Analyzing Influence on ADA

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Add as a preferred source on Google News As was officially announced , the Cardano Foundation is going to take over stewardship of Project Catalyst from Input Output Global, which could be one of the biggest changes in the Cardano ecosystem in recent years. Advertisement Before, IOG, the protocol's main development company, was in charge of handing out the grants. Catalyst, Cardano's on-chain funding engine, has supported over 2,200 projects and currently handles over 500 active grants. How could Catalyst overhaul influence ADA? During the transition, team members will move to the foundation to maintain continuity through Fund14. Fund15 and Fund16 have been canceled, and the ADA allocated to those rounds will go back to the treasury with Intersect. HOT Stories Morning Crypto Report: Mr. XRP Yoshitaka Kitao Predicts 2026 On-Chain Revolution, Bitcoin in 'Not Digital Gold' Period: CryptoQuant CEO, Ethereum Foundation to Stake 70,000 ETH Bitcoin Breaks Below Critical $63,000 Support From a regulatory perspective, if a single commercial entity has a smaller operational role, it supports the idea that Cardano governance is decentralized instead of being directed by one private company. In jurisdictions examining token classification, the difference between development and ecosystem funding is important. Advertisement We would like to thank @IOGroup for their commitment to Catalyst since its inception and their continued support throughout this transition phase. We will begin conversations with the community regarding Catalyst as soon as this phase is complete. We intend to continue working… https://t.co/BYNG4b25Ea?from=article-links — Cardano Foundation (@Cardano_CF) February 24, 2026 From a financial perspective, giving back unallocated ADA to the treasury puts a limit on how much of the token will be distributed in the near future through grants. A lot of grantees convert Cardano tokens to fund operations, which adds to the market supply. Pausing two funding rounds changes the internal liquidity cycle. You Might Also Like Tue, 02/24/2026 - 15:16 Binance List New Cardano (ADA), Dogecoin (DOGE) Pairs Against New Stablecoin By Gamza Khanzadaev Advertisement Finally, strategically, the shift indicates a more strict approach to managing capital. Catalyst has gotten some criticism for supporting a bunch of small projects that do not always have a clear, measurable impact. The foundation has shown that it is okay with a mix of new ideas coming from the ground up and also being used by big companies and organizations. This suggests that they are going to be more picky about who they accept and keep a closer eye on progress. #Cardano #Cardano News