Cardano News: DReps Approve Pogun Vote, Opening a New Era for ADA

Cardano’s delegated representatives have rejected a proposal seeking 12.29 million ADA from the community treasury to support Input Output’s Pogun Bitcoin DeFi product. According to the final Koios tally, DReps representing 35.67% of voting power supported the proposal, while 64.33% voted against it.

The decision leaves the 12.29 million ADA in Cardano’s treasury. However, it also means the network will not receive the revenue-sharing arrangement that Input Output had proposed as part of the funding deal. Charles Hoskinson later said that IOG would no longer automatically prioritize Cardano when deciding where to launch future products.

Pogun is Input Output’s initiative to bring Bitcoin into decentralized finance through a credit market, a yield-focused product, and a BitVM-based trust-minimized bridge. The rejected proposal requested 12.29 million ADA, with repayment tied to quarterly earnings before interest, taxes, depreciation, and amortization. The calculation was based on an EBITDA figure of $2.95 million.

Input Output’s April 2026 outline proposed returning 20% of Pogun’s earnings to the Cardano treasury until the original funding was recovered. After that, the arrangement would have provided a perpetual 5% return from Cardano-related products. However, the on-chain proposal presented to DReps did not contain an explicit exclusivity requirement.

For a Cardano treasury proposal to pass, both the Constitutional Committee and DReps must approve it. The Constitutional Committee unanimously supported Pogun, while the DReps, who are elected directly by ADA holders, rejected the request. The difference between the two governance bodies made the outcome particularly significant.

The immediate financial result is straightforward: Cardano retains the requested ADA but loses the revenue-sharing opportunity included in the proposed arrangement. That distinction could become relevant when assessing the long-term sustainability of the community treasury.

Input Output played a major role in developing Cardano and remains an important contributor to its ecosystem, adding significance to the governance decision. Pogun’s proposal argued that Cardano offered a suitable technical environment for Bitcoin DeFi rather than claiming that IOG should automatically launch the product there. Ultimately, ADA holders were not required to approve those terms, and the required DRep support did not materialize.

Hoskinson addressed the decision during a Sept. 18, 2026, broadcast. He said Input Output would now select the blockchain that best fits each product instead of automatically giving Cardano priority. He also said an unfunded product could direct its activity to another network, while another ecosystem could potentially receive exclusivity in exchange for providing support.

At the same time, Hoskinson continued to describe Cardano as a strong technical option for Bitcoin DeFi, particularly for applications connecting with systems based on Bitcoin-style transaction outputs. His comments therefore point to a change in IOG’s product-launch policy rather than an outright departure from Cardano.

What Comes Next for Cardano?

Hoskinson said Pogun remains scheduled to launch within 90 days of his broadcast, putting the expected timeframe around mid-December 2026 regardless of the treasury vote. Input Output has not yet revealed which blockchain will ultimately host the product. The network selected could therefore receive the revenue generated by Pogun under its eventual operating model.

Hoskinson also said RealFi, another Input Output initiative, is expected to launch on Cardano in October 2026. That rollout could provide another near-term development for the Cardano ecosystem following the Pogun funding decision.

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