The Open Source Committee in conjunction with the Open Source Office (OSO) seeks to enact a Paid Open Source Model for Sustainable Development in Cardano. A budget proposal of ₳5,885,000 (approx. $2.94M USD), designed to ensure the long-term sustainability of open-source development within the Cardano ecosystem. This initiative will be managed by the Open Source Committee (OSC) pending approval by the DReps, and seeks to address the critical funding gaps that hinder the maintenance, security, and growth of essential open-source projects.

Key Objectives & Strategic Impact

• Sustainable Open-Source Development: Funding for 50+ key projects via the Maintainer Retainer Program ensures continuous innovation and maintenance of mission-critical repositories.
• Developer Onboarding & Retention: Programs like Cardano Summer of Code, Code For Us, and Developer Advocates provide clear pathways for new and experienced contributors to engage in Cardano development.
• Security & Infrastructure Reliability: Investments in Bug Bounties, Incident Monitoring, and Tooling Sustainability safeguard the network and strengthen ecosystem resilience.
• Commercialization & Ecosystem Growth: The Accelerator Research Program and Expanded Project Support Services transition promising projects from incubation to sustainable businesses.
• Community Engagement & Governance: The OSC ensures transparent fund allocation, performance monitoring, and open participation for contributors across Cardano.

The Challenge Cardano’s open-source ecosystem is critical to the network’s long-term success, yet it lacks structured funding to support its growth. Unlike other blockchain ecosystems that provide clear financial backing for maintainers, contributors, and security efforts, Cardano’s open-source projects often rely on ad-hoc funding or volunteer efforts.

This has led to several challenges:

• Unmaintained Core Infrastructure: Key open-source repositories, including those used by dApp developers and the broader ecosystem, lack dedicated funding for long-term maintenance.
• Loss of Contributors: Without clear incentives, experienced developers leave for other ecosystems, making it harder to sustain projects and onboard new talent.
• Security Risks: A lack of structured funding for bug bounties and incident response leaves Cardano exposed to vulnerabilities that could otherwise be proactively addressed.
• Slower Ecosystem Growth: The absence of stable funding for new tools, developer education, and strategic project support makes it difficult to keep pace with industry advancements.

Why This Matters

If Cardano wants to remain a competitive, developer-friendly blockchain, it must invest in the sustainability of its open-source infrastructure. Without structured funding, key projects will stagnate, developer engagement will decline, and security risks will increase.

A well-supported open-source ecosystem ensures:

• Reliable infrastructure for wallets, dApps, and developer tooling.
• More engaged developers who have clear pathways to contribute and earn.
• Stronger security with funding for bug bounties and incident response.
• A faster-growing ecosystem where teams can build with confidence, knowing key tools and services are actively maintained.

The Solution: The Paid Open Source Model

This budget proposal introduces a Paid Open Source Model to ensure that essential open-source projects receive structured funding. It includes:

• A Maintainer Retainer Program to fund developers maintaining critical repositories.
• Bug bounty and security initiatives to identify and fix vulnerabilities.
• Developer advocacy and engagement programs to onboard and retain contributors.
• An incubation framework to support promising open-source projects and help them scale.

By implementing this model, Cardano will create a predictable, transparent, and sustainable funding mechanism that supports long-term open-source development, improves security, and accelerates ecosystem growth.

Key Objectives & Strategic Impact

• Sustainable Open-Source Development: Funding for 50+ key projects via the Maintainer Retainer Program ensures continuous innovation and maintenance of mission-critical repositories.
• Developer Onboarding & Retention: Programs like Cardano Summer of Code, Code For Us, and Developer Advocates provide clear pathways for new and experienced contributors to engage in Cardano development.
• Security & Infrastructure Reliability: Investments in Bug Bounties, Incident Monitoring, and Tooling Sustainability safeguard the network and strengthen ecosystem resilience.
• Commercialization & Ecosystem Growth: The Accelerator Research Program and Expanded Project Support Services transition promising projects from incubation to sustainable businesses.
• Community Engagement & Governance: The OSC ensures transparent fund allocation, performance monitoring, and open participation for contributors across Cardano.

Initiative Funding (ADA) Funding (USD) Paid in

Maintainer Retainer Program ₳1.8M $900K ADA Tooling Sustainability Program ₳2M $1M ADA Bug Bounty Program ₳600K $300K ADA Developer Advocacy ₳160K $80K ADA Incident Monitoring & Security ₳175K $87.5K USD Cardano Summer of Code ₳400K $200K USD Code For Us Community Bounties. ₳250K $125K ADA Events, Travel, and Conferences ₳250K $125K USD Accelerator Research Program ₳100K $50K ADA

Total Allocation ₳5.885M. $2.94M

Maintainer Retainer: 100+ Community developers (6 months)

Incident Response: 1 experienced developer

Bug Bounty: 10-50 Community developers (per task stipend)

Code for Us: 10-50 Community developers (per task stipend)

Open Source Committee: 8-10 Seated/Voting Members

Developer Advocate Program: 4 Community Developers (new cohort)

Tooling Working Group: 6+ experienced and active working group members

Accelerator: 7-12 SME Facilitators for scheduled growth/advice sessions

committees.docs.intersectmbo.org/intersect-open-source-committee

Fully recorded meetings with regular community contribution.

Supportive Open Source Office staff. Policies, frameworks, programs consistently reviewed and regularly released.

https://493748844-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLBdnzp0eZpGri9sVpseI%2Fuploads%2FvuisqFT8uCyKSDgpNmyW%2FPaid%20Open%20Source%20Model-%20LIVE.pdf?alt=media&token=577c8bd1-c9df-43a0-8b57-e883ddb1254a

Governance & Delegated Authority

This proposal requests that the OSC in conjunction with the OSO be granted delegated authority to manage the entire allocation, ensuring: ✅ Project Selection & Funding Oversight – Strategic deployment of resources to maximize ecosystem impact. ✅ Contract & Vendor Management – Efficient execution of agreements to support development and security initiatives. ✅ Facilitation of Broad Community Participation – Open collaboration channels for developers, maintainers, and ecosystem stakeholders.

Cardano Forum post: Cardano Core Budget Proposal - Governance / Budgets 2025 - Cardano Forum: https://forum.cardano.org/t/cardano-core-budget-proposal/143047

Open Source Office YouTube: youtube.com/@osointersectmbo/playlists Open Source Committee meetings have been recorded and are shared in a playlist. With open meetings the community is and always has been welcome to provide feedback.

DRep Approval for OSC to fully oversee and administer this budget.

Open Source Committee: staffed at 80+% (minimum 8/10 members) Community Involvement

While the OSC will oversee funding, the broader Cardano community will play an active role in shaping open-source growth. The proposal ensures: ✅ Open participation – Developers, maintainers, and contributors can engage through funded programs, bounties, and mentorship. ✅ Transparency & accountability – The OSC will report on funding allocation, project milestones, and impact. ✅ Performance-based funding – Projects will be held to clear milestones and deliverables.

This approach keeps funding structured while maintaining an open, collaborative process where the community has a say in how Cardano’s open-source development evolves.