Cardano DReps Reject 12.29M ADA Pogun Funding Request

One Cardano governance action wey ask for 12.29 million ADA for Pogun no get the DRep support wey e need, so treasury funds no fit comot. The result separate constitutional compliance from the decision to use community money for one commercial Bitcoin credit product. Even with the vote, Pogun still dey develop.

DRep Vote Blocks Pogun Treasury Withdrawal

The final voting summary show say 35.67% of DRep voting power support the proposal and 64.33% vote against am. Since DRep support no reach the level wey dem require, the proposed treasury withdrawal no fit happen.

The Constitutional Committee review the same governance action separately. All seven recorded votes talk say the proposal dey constitutional, meaning say the committee no see any conflict with the Cardano Constitution.

The two voting groups get different work. The Constitutional Committee dey check whether governance action follow Cardano constitutional rules. Dem no dey decide whether product get enough users, whether the commercial model fit work, or whether the requested funding na correct way to use treasury capital.

DReps na dem dey decide whether proposal get enough support from delegated Cardano stakeholders. So Pogun pass constitutional review but e no pass the decision to allocate capital.

Pogun Offered Treasury a Revenue-Sharing Model

Pogun na Input Output portfolio product wey dey build fixed-term credit wey Bitcoin go back am. The current model base on direct agreement between lenders and borrowers, e no get pooled risk and e no dey do automatic liquidations wey market prices go trigger.

The project still dey build Pogun Mirror, one BitVM-based collateral system wey dem design to keep Bitcoin locked for im native network. Dem run prototype test for Bitcoin mainnet for August, e cover both blocked fraudulent withdrawal and completed valid withdrawal. Pogun website talk say the test no mean say product don ready for production and say the Bitcoin collateral system never go live.

The funding request no be like conventional grant. Under the terms wey dem publish, Cardano treasury go receive 20% of Pogun earnings until dem repay the initial funding, after that dem go continue with 5% share wey connect to Cardano-related Pogun products.

The public proposal no include clear requirement say Pogun must remain exclusive to Cardano. Input Output product page currently describe Pogun as multichain, while the company main website still call am Bitcoin and Cardano bridge.

This structure put treasury close to early commercial capital pass to be like conventional funder of open-source infrastructure. DReps come need assess product maturity, execution risk and possible future returns together with the proposed benefit to Cardano ecosystem.

Pogun Continues Without Treasury Funding

The vote no end Pogun. The website still active, the product dey accept waitlist registrations from borrowers, lenders and operators, and development fit continue with other sources of capital.

Charles Hoskinson talk say Input Output commercial ventures go choose networks based on technical and business requirements, no be to automatically give Cardano first place. So Pogun fit operate across several ecosystems or get support from another network.

RealFi no join this governance action. Input Output still present am as separate product wey connect to Cardano, and the Pogun decision no change the deployment plans wey dem don announce before.

The immediate consequences just concern the rejected funding arrangement. The requested capital still dey inside Cardano treasury, and the proposed repayment plus the ongoing revenue share no go start.

For future commercial applicants, the Pogun vote show two separate requirements. Treasury proposal must comply with the Cardano Constitution, but e must also convince DReps say im maturity, risk, terms and ecosystem benefit justify use of community capital. Pogun meet the constitutional requirement but e no get approval for the investment itself.