Cardano is once again in the market spotlight as the Cardano Foundation officially approved a governance proposal involving 300 million ADA. The proposal aims to reduce the net treasury change limit from 350 million ADA to 300 million ADA during Epochs 613 to 713, aligning it with the projected treasury inflow for 2025 (approximately 306.9 million ADA) and mitigating the fiscal deficit issues experienced in previous cycles. The Foundation noted that this move is intended to strengthen fiscal discipline, ensure that spending is more closely linked to actual revenue, and avoid the decline in execution efficiency caused by the overlap of the budget cycle with the year-end holidays.
Although the current limit of 350 million ADA remains valid at the constitutional level, the Foundation is calling on the Constitutional Committee to clarify whether a vote is required to confirm the new limit in order to eliminate uncertainty in the governance process. This move is seen as an important step in pushing Cardano's governance mechanism towards a clearer and more predictable path.
On the market front, the ADA price, after rebounding from the $0.24 area, tested the 0.5 Fibonacci retracement level of $0.2614 and successfully held above $0.255. Spot trading volume increased by 33.39% to $779 million, and derivatives open interest rose by 3.87% to $428 million, reflecting a recovery in market sentiment. Technical charts show that the price has formed a series of higher lows during the rebound, suggesting that short-term momentum is building. At the same time, the progress of cooperation between the Archax platform in the EU's regulated tokenization space has also injected new narrative momentum into ADA.
It is worth noting that the Foundation emphasized that although the governance budget tends to be tighter, the underlying network still faces structural bottlenecks such as throughput, finality confirmation, and transactions per second processing capacity. Future use of funds will be more focused on infrastructure optimization rather than simply expanding ecological expenditure.