Input Output Global, the organization behind Cardano development, is handing off core protocol work to external teams including Midgard Labs and VacuumLabs as part of a broader shift toward decentralized governance of the layer-one blockchain.
IOG proposed the transition in April 2026 as part of a funding request that included plans to allocate $46.8 million toward 2026 development priorities. The shift distributes maintenance and feature work across multiple independent contractors rather than concentrating it within IOG's own engineering staff. This structure removes a single point of failure in the protocol's evolution.
Cardano's development governance had previously relied on IOG as the primary contractor and decision-maker. The protocol uses a formal on-chain governance model where holders of ADA token can vote on proposals; the transition aligns operational structure with that voting authority by removing IOG's role as the sole development operator.
Multiple contractor teams now handle distinct development areas. The specific breakdown of responsibilities, which teams own which protocol layers or feature sets, has not been formally detailed in public statements, though IOG's governance proposals outline the general framework for contractor engagement and oversight.
IOG continues to participate in Cardano governance and contributes funding through grant programs. The shift to external contractors is expected to accelerate the timeline for full community stewardship of the protocol's technical direction.
