Cardano Treasury Hits 91% Cap: Governance Stalls as ADA Withdrawals Drain Funds

Cardano’s governance mechanism has stalled after its treasury reached 91% of the 500 million ADA withdrawal cap, with 30 enacted withdrawals consuming 457.4 million ADA.

The hard cap prevents incoming funds or refunds from replenishing the pool, raising concerns about future protocol spending and the sustainability of Cardano’s on‑chain treasury model. Analysts warn that without adjustments, the network may face funding shortages for development and ecosystem grants.