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Cardano approves large-scale ADA allocation to boost DeFi development

2026-08-13 15:44:01
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The Cardano community approves 120 million ADA for DeFi mobility improvement plan

The Cardano community has voted to allocate 120 million ADA from network vaults to AlphaGrowth's PRIME plan, one of the larger vault deployments in the current governance cycle. The proposal received 73.04% of the voting support, reflecting broad community consensus.

Closing the liquidity gap

The approved proposal allocates 120 million ADA to AlphaGrowth's PRIME program, which aims to strengthen Cardano's DeFi ecosystem and increase total locked position value (TVL) through strategic capital deployments. The goal is ambitious: the plan seeks to increase Cardano's TVL to more than $200 million. This is a significant jump from the current level of the network-Cardano's DeFi TVL currently stands at approximately $68 million, far behind major competitors such as Ethereum and Solana.

In addition to expanding liquidity, the PRIME program is also committed to reducing ecological fragmentation, improving capital efficiency, and promoting sustainable growth through higher user activity, increased protocol fees, and stronger on-chain interactions.

Built-in safeguard mechanism

After AlphaGrowth revised its original plan based on concerns raised by community members and representatives, Cardano's decentralized governance system approved the proposal. The revised structure includes a number of accountability measures, including: the release of funds in six-month tranches, a 24-month TVL observation period, term limits, and more diverse teams managing the program. It is worth noting that approximately 90 million ADAs have been locked in the third phase of release and require further audit and approval before they can be unlocked; the funds available in the near future are limited to approximately 30 million ADAs.

AlphaGrowth provides analysis and payment advice, the operations team has veto power, and Intersect holds funds through treasury contracts audited by Sundae Labs. Performance fees are only for verified TVL growth and explicitly exclude the impact of ADA price fluctuations.

The community also adjusted its spending plan. AlphaGrowth cut its original $2.4 million eco-marketing allocation to $648.72 million and divided the revised budget into three categories: 40% for external content creators, 50% for event promotion and advertising, and 10% for tool development.

Well-known DRep Dave changed his vote to yes, and Iagon founder Dr. Navjit Dhaliwal and the Cardano Foundation also supported the revised proposal, adding institutional support to the plan ahead of the implementation phase.

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