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- The Cardano Foundation has introduced a new proposal to withdraw 50 million ADA from the Treasury as the initial funding for the Orion Venture Fund.
- The Treasury is set to contribute $75 million, while outside investors chip in with $5 million for the fund, which will be managed by Draper Dragon.
In January, the Cardano Foundation proposed a new fund to be managed by Draper Dragon and to invest in startups building on the network. It has now introduced a proposal to withdraw the first tranche of ADA from the Treasury to fund this initiative.
The Foundation has called on the ecosystem to vote on the proposal, which seeks to withdraw 50 million ADA, worth $13.66 million at press time. “We support this proposal, which asks the Community to vote on this first tranche,” it stated.
A new Cardano Treasury proposal is live and needs your vote.
This Treasury withdrawal of 50M ADA is the first tranche of the Orion Fund, a @DraperDragon venture fund proposal.
The Orion Fund, managed by Draper Dragon, aims to develop, strengthen and expand Cardano's ecosystem…
— Cardano Foundation (@Cardano_CF) March 12, 2026
As CNF reported, the Orion Venture Fund was proposed by Draper Dragon and Draper University and will invest in startups building on Cardano over the next six years. It will be target venture-style returns, returning the profits to the Treasury. It makes direct investments in high-potential ventures, provides access to tier-1 exchanges, offers global marketing and liquidity provision, and establishes a growth accelerator for educational support.
The proposal recommended three withdrawals from the Treasury. The first would amount to a fixed $15 million, while the next two would be $30 million each; however, the total amount to be withdrawn is capped at 175 million ADA. These stipulations present a challenge due to market fluctuations. Currently, the 50 million ADA amounts to $13.66 million, lower than the targeted $15 million. The 175 million ADA cap is only worth $47.8 million at prevailing prices, significantly lower than the targeted $75 million.
Venture-Style Support for Cardano Startups
The proposal has received support from influential figures within the Cardano landscape. One of these is Kris Kowalsky, a member of the budget committee at Intersect, a coordination organisation for businesses, developers and community members.
Kowalsky says that he has held discussions with peers in the ecosystem and they are excited to “welcome an outsider who was considering investing in our ecosystem. [Draper] is asking for our part, and I am glad to support this initiative.”
However, this is not entirely true. The Cardano Treasury will contribute 94% of the capital for the new fund, with the remaining amount shared among qualified investors.
Kowalsky added:
We, incumbents, can grow and build, yet outsiders are multipliers which are market makers. At this moment, this is a sign of trust, will, and positivity for Cardano. When you look at today, don’t think about losing; think about winners at this point in history. Vote for Draper.
Some community members have also questioned why the Foundation settled on Draper Dragon and did not consider any other venture capitalists. Others have called for enhanced oversight of the fund to ensure accountability from all parties and that the community sees clear return metrics.
This week, founder Charles Hoskinson advocated for a new approach where the Treasury becomes an investment engine and ceases issuing grants, as reported by CNF.
