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Cardano Hands Core Engineering to Outside Teams in Push for Full Decentralization

The move transfers key code and tooling to specialist firms under community oversight to reduce single‑vendor risk and test whether distributed teams can sustain development.

Overview

  • Input Output announced on Friday that it will begin transferring control of Cardano’s core engineering to external specialist firms starting in August 2026 with the handover running into 2027.
  • The handover covers the Haskell node, the Plutus smart‑contract platform, the Daedalus wallet, Hydra scaling tools, and developer relations, with Se7en Labs and Teragone named as early participants.
  • Community bodies Intersect and Pragma will oversee formal specifications and a plan to maintain at least three independent node implementations in Haskell, Rust and Go to avoid a single‑client failure.
  • The Van Rossem upgrade to Protocol Version 11 is set to go live on July 18, 2026 and is expected to cut smart‑contract execution costs through new Plutus built‑ins.
  • Cardano’s engineering handover comes as on‑chain activity is weak (TVL near $70 million and ADA around $0.16) and IO shifts resources toward IO Labs and IO Ventures, so the next 12–18 months will show whether decentralised teams boost development or fragment coordination.