Key Highlights
- Cardano approved a ₳5M treasury loan for CNT listings, shifting from grants to loans while highlighting the need for accountability and fiscal discipline.
- Snek delivered key milestones quickly, expanding token access globally, but the chain split shows that technical risks remain within the network.
- The recent chain split was temporary; older nodes rejected the malformed transaction, newer nodes processed it, and no lasting damage occurred.
Cardano is expanding the global reach of its tokens by approving a 5 million ADA treasury loan (approximately $2.07 million) to fund listings of Cardano native tokens and expand its ecosystem. The Cardano Foundation, through its DRep voting process, gave a clear “Yes” to the Snek Foundation’s proposal.
The move follows earlier abstinence by the foundation from a similar proposal due to unclear financial details and concerns about the funding model. As Snek refined the plan to meet governance requirements, the Foundation became more confident in the proposal.
The Foundation emphasized that remaining issues would be handled collaboratively with Intersect once the loan agreement is finalized. “We concluded that voting ‘yes’ would support the experimental approach and the project’s sustainable growth,” the foundation said in their official statement.
The loan represents a new funding approach for the Cardano ecosystem. Unlike grants, a treasury-backed loan requires repayment, encouraging fiscal discipline. EMURGO, a co-founding entity of Cardano, supported this approach, stating, “The loan model encourages fiscal discipline. Additionally, snek has a proven track record with T1 listings, and the advisory role of phillip_pon provides stronger oversight.”
The proposal comes after months of community discussion about treasury withdrawals. Initially presented as a grant, the request was meant to fund listings of SNEK and other Cardano tokens on major global exchanges.
Chain split incident highlights network risks
Despite improvements, the network still encountered a major technical problem: Cardano split into two chains on November 21, 2025, due to the appearance of a malformed delegation transaction issued by a pseudonymous developer, Homer J. The transaction exploited a deserialization bug that had been present in versions from 2022 onward.
Homer J. said, “I watched in horror as block explorers froze and the network became disrupted.” He insisted that he did not have any malicious intentions, and he was truly sorry for what happened.
Intersect, the governance body behind Cardano, conducted a post-mortem, confirming that older nodes rejected the transaction, while newer nodes processed it. The split contributed to a temporary network disruption. Experts, however, confirmed that no permanent damage happened in the process.
Also Read: DAT Stocks Outpace Crypto Market Recovery Post November Crash
