Cardano’s delegated representatives have rejected a request for 12.29 million ADA from the community treasury to support Input Output’s Pogun Bitcoin DeFi project. The final Koios results showed that DReps representing 35.67% of voting power backed the proposal, while 64.33% opposed it.

The vote leaves the requested ADA in Cardano’s treasury. However, Cardano will also miss out on the revenue-sharing structure that Input Output had proposed as part of the funding arrangement. Following the decision, Charles Hoskinson said IOG would no longer automatically give Cardano priority when deciding where to launch new products.

Pogun is designed to connect Bitcoin with decentralized finance through a credit market, a yield product and a BitVM-powered bridge intended to reduce the need for trusted intermediaries. The proposal sought 12.29 million ADA, with repayment tied to quarterly earnings before interest, taxes, depreciation and amortization and based on a $2.95 million EBITDA reference point.

Input Output’s April 2026 plan proposed directing 20% of Pogun’s earnings to the Cardano treasury until the initial funding was recovered. Once that amount had been repaid, the arrangement called for a perpetual 5% revenue share from Cardano-related products. The actual on-chain proposal, however, did not contain an explicit exclusivity requirement.

Cardano treasury actions require approval from both the Constitutional Committee and DReps. The Constitutional Committee unanimously supported the Pogun proposal, but DReps elected by ADA holders voted against it. The split highlights the role of Cardano’s decentralized governance process in deciding how treasury funds are allocated.

The immediate consequence is that Cardano keeps the 12.29 million ADA but gives up the potential revenue stream attached to the proposed funding deal. That distinction could become important as the community considers future treasury allocations and long-term funding strategies.

The decision is particularly notable given Input Output’s role in Cardano’s development and its continuing involvement in the ecosystem. Pogun’s proposal argued that Cardano offered a technically suitable environment for Bitcoin DeFi, but it did not make Cardano the automatic home for the product. The DReps ultimately declined the funding terms presented in the proposal.

Hoskinson addressed the vote during a Sept. 18, 2026, broadcast, saying IOG would evaluate each product independently and select the network that best meets its requirements. He added that products that do not receive Cardano funding could be deployed elsewhere, while another blockchain ecosystem could potentially secure exclusivity by supporting the project.

At the same time, Hoskinson maintained that Cardano remains a strong technical option for Bitcoin DeFi, particularly for applications interacting with Bitcoin-style transaction outputs. His comments indicate a shift in IOG’s approach to product deployment rather than an outright departure from the Cardano ecosystem.

What’s Next for Cardano?

Hoskinson said Pogun is expected to launch within 90 days of the Sept. 18 broadcast, putting the target around mid-December 2026. Input Output has not yet revealed which blockchain will ultimately host the project, meaning the eventual host network could capture the revenue generated by Pogun.

Hoskinson also said RealFi, another Input Output initiative, is scheduled to launch on Cardano in October 2026. That rollout will offer another near-term development for the ecosystem following the rejection of the Pogun funding proposal.