Hedera Council's Major HBAR Allocation Boosts Ecosystem and Governance
Rebeca Moen Jan 15, 2024 05:17
Hedera Global Governing Council allocates 4.86 billion HBAR ($408 million) for network development and decentralized governance, focusing on supporting existing initiatives and operational efficiency.
The Hedera Global Governing Council, overseeing the Hedera network, has recently announced a significant move in the cryptocurrency space. It has approved the allocation of 4.86 billion Hedera (HBAR) — the network's native cryptocurrency — valued at approximately $408 million, aimed at further development and advancing decentralized governance.
This strategic decision aligns with Hedera’s goal to strengthen its base following its impressive 2023 performance, which saw over 33 billion real-world transactions on the network. The lion's share of the funds, accounting for 4.248 billion HBAR, is earmarked for existing initiatives such as the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation.
Additionally, a portion of the allocation, precisely 614.06 million HBAR, is designated for the operational costs of the Hedera Council and to compensate early simple agreements for future token (SAFT) buyers. This underscores the council's commitment to operational efficiency and rewarding early supporters of the network.
The council's chief financial officer, Betsabe Botaitis, outlined in a blog post that the grants for the HBAR Foundation and the Hashgraph Association are scheduled for disbursement in the first quarter of 2024. The DLT Science Foundation will receive its grants as it hits crucial milestones during the year, emphasizing the performance-based approach of the council.
Botaitis also highlighted the critical role of ecosystem partners in driving Hedera’s rapid adoption, expressing satisfaction with the established foundation and the council’s readiness to continue supporting network development through these new grants.
In a related development, the HBAR Foundation and the Algorand Foundation have joined forces to create the DeRec Alliance. This alliance, unveiled on January 11, aims to develop a decentralized recovery system for digital assets. It signifies the collaborative efforts within the crypto industry to enhance security and recovery processes for digital assets, aligning them with conventional digital experiences.
This move by the Hedera Council reflects a strategic focus on enhancing the Hedera network's robustness and governance structures, preparing it for future growth and expansion in the rapidly evolving cryptocurrency landscape
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