📌 The Cardano Treasury has approved an ambitious project aimed at improving scalability and user-friendliness DailyCoin
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Goal: to increase throughput by 1060 times through parallel processing during the block propagation phasea stage that, according to the organizer, currently experiences significant idle time, limiting the number of transactions per second.
A YouTube video emphasizes that this update aims to preserve decentralization and reduce costs for staking pool operators (SPOs)a persistent challenge, as increased block capacity raises hardware requirements.
Laos is being developed based on Ouroboros Praos rather than replacing it, positioning this development as an evolution of Cardanos (ADA) existing consensus mechanism rather than a design fork.
A general proposal titled Cardano Update was also adopted, combining three significant changes: CIP-159 account/address improvements to optimize the processing of micropayments and open up new revenue models for wallets and aggregators; the concept of a multi-asset treasury, allowing for the creation of reserves and budgets in assets other than ADA, including potential stablecoins; and the resumption of work on Babel fees.
Babel fees will allow users to pay for transactions with assets other than ADA. Linda notes that a form of this already exists via FluTokens on the mainnet, but requires a collateral deposit in ADA. The IO version aims to remove this limitation and simplify, for example, paying with BTC when using a bridge or using a games native token for in-game transactions.
On the developer side, several funded proposals focus on security and developer experience. High-assurance technical collaboration will extend formal verification tools from individual contracts to full dApps, add vulnerability analysis, and support multiple smart contract languages.
Parallel efforts around Plutus and a separate developer experience initiative aim to create faster and cheaper contracts and simplify the onboarding process into the ecosystem in partnership with ecosystem teams such as Midgard Labs, TX Pipe, Harmonic Labs, and others.
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The maintenance initiative covers the unglamorous but critically important workfixing bugs, recovering from outages, analyzing infrastructure performance, and conducting security auditsthat underpins all other updates.
Looking beyond the current cycle, the Cardano Vision 2026 research proposal was also approved.
Instead of releasing a single feature, it funds a research track across three areas: scalability (including layers, L2 infrastructure, zero-knowledge scaling, data accessibility, and even sharding), user experience (light clients, decentralized APIs, intent-based transactions, more on Babel fees), and long-term security.
The scope of research clearly includes developing incentives for staking pools, as SPOs are asked to support additional services such as Mithril and future layers, as well as interoperability (bridges, atomic swaps), decentralized identity, governance improvements, and post-quantum cryptography.
CryptoFly frames this as preparing Cardano for a future in which security requirements, user expectations, and the overall blockchain landscape will look very different from today.
The Cardano Treasury is now focused on making the chain more scalable, simplifying development on it, reducing reliance on ADA alone for budgeting and fees, and enhancing formal security while setting aside a budget for long-term bets on L2s, interoperability, and quantum-resistant cryptography. The risk of default remains, but the governance round has established a clear strategic direction.
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Frequently Asked Questions:
What is Laos in Cardano?
It is a consensus and scaling initiative designed to implement parallel processing and increase Cardanos throughput by approximately 1060 times, while maintaining decentralization.
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