Cardano’s delegated representatives have rejected a proposal seeking 12.29 million ADA from the community treasury to help fund Input Output’s Pogun Bitcoin DeFi project. The final Koios tally showed 35.67% of DRep voting power supporting the request, compared with 64.33% voting against it.
The decision keeps the 12.29 million ADA in Cardano’s treasury, but it also removes the revenue-sharing arrangement that Input Output had proposed in exchange for the funding. Following the vote, Charles Hoskinson said IOG would no longer automatically select Cardano as the default network for its future products.
Pogun is Input Output’s effort to expand Bitcoin’s role in decentralized finance. The project is built around a credit market, a yield product and a BitVM-powered bridge designed to minimize reliance on trusted intermediaries. The rejected proposal requested 12.29 million ADA, with repayment linked to quarterly earnings before interest, taxes, depreciation and amortization, based on a $2.95 million EBITDA benchmark.
An April 2026 outline from Input Output proposed sending 20% of Pogun’s earnings to Cardano’s treasury until the initial funding had been recovered. Following repayment, Cardano would have received a perpetual 5% share of revenue from products connected to the network. However, the proposal submitted for the on-chain vote did not include a specific exclusivity commitment.
Cardano’s treasury governance process requires approval from both the Constitutional Committee and DReps. The committee unanimously approved the Pogun request, while DReps, who are elected by ADA holders, rejected it. The different outcomes demonstrate how the two governance bodies can reach separate conclusions on treasury spending.
The immediate result is that Cardano retains its treasury funds but gives up the revenue-sharing terms that were attached to the proposed arrangement. That trade-off could become relevant as the ecosystem considers how to manage and grow its community treasury over the longer term.
The vote also carries significance because Input Output was instrumental in Cardano’s development and remains a major contributor to the ecosystem. Pogun’s proposal made a technical case for Cardano as its preferred deployment environment for Bitcoin DeFi, rather than treating Cardano as an automatic destination. The DReps ultimately declined the funding terms put before them.
Hoskinson discussed the outcome during a Sept. 18, 2026, broadcast. He said IOG would now assess the most appropriate network for each product instead of giving Cardano automatic priority. He also suggested that an unfunded product could operate on another blockchain and that another ecosystem could potentially receive exclusivity in exchange for providing support.
Despite that change, Hoskinson continued to describe Cardano as a strong technical candidate for Bitcoin DeFi, particularly for systems that interact with Bitcoin-style transaction outputs. His remarks point toward a change in IOG’s deployment strategy rather than a complete separation from Cardano.
What Happens Next?
Hoskinson said Pogun is still expected to launch within 90 days of the Sept. 18 broadcast, putting the projected launch around mid-December 2026. Input Output has not yet confirmed which blockchain will host the project. If another network is selected, that ecosystem could receive the economic activity and revenue associated with Pogun.
Another Input Output initiative, RealFi, is expected to launch on Cardano in October 2026, according to Hoskinson. Its rollout will be another development to watch for the Cardano ecosystem following the DRep vote on Pogun.
