Hedera Hashgraph Allocates 4.86 Billion HBAR To Encourage Network Development

HBAR crypto assets. (Photo; Doc. Techrato)

JAKARTA - The Hedera Council, the network management agency Hedera Hashgraph, has approved an additional allocation of 4.86 billion HBAR (the native Hedera cryptocurrency) for its ecosystem development funds. This fund is planned to be given as a grant to various organizations that contribute to the development of the Hedera network and the growth of decentralized applications (Dapps) as well as services on its platform.

This allocation demonstrates Hedera's commitment to advancing hashgraph technology, a faster, safer and fairer consensus protocol than traditional blockchain. Hedera has been used by large companies such as Alphabet Inc, Boeing Co., and IBM for various purposes, such as data storage, payments, digital identities, and others.

Most of the allocated HBARs, around 4.248 billion coins, will be distributed to support key initiatives advancing the development of the Hedera network. Some organizations that will benefit from these funds are:

These organizations are also the main players in forming the DeRec Alliance, a cooperation project involving several organizations from the partnership of Hedera and Algorand, an innovative blockchain protocol.

DeRec Alliance aims to create a decentralized digital wallet recovery system, which allows users to recover their digital assets with the help of a self-elected group of aides.

The support provided through this grant is expected to accelerate the growth of these organizations, as well as contribute to the expansion of the Hedera ecosystem.

Allocation For Operational Costs

In addition, the Hedera Council noted that around 614.06 million HBAR will be allocated to cover operational costs and compensate early buyers through Simple Agreement for Future Tokens (SAFT). SAFT is a legal agreement that allows investors to buy HBAR before the Hedera network launches.

This financial allocation not only strengthens the Council's financial lifepower, but is also proof of its commitment to awarding early supporters of the Hedera network. The Hedera Council consists of 39 organizations from various sectors, regions and industries, which have the same voting rights in determining the direction and policies of the Hedera network.

Encouraging Hedera Network Quick Adoption

Hedera Council's Chief Financial Officer (CFO), Betsabe Botaitis, explained the key role played by ecosystem partners in encouraging the rapid adoption of the Hedera network throughout 2023. With more than 33 billion real-world transactions recorded during this period, the importance of this collaboration cannot be ignored.

CFO emphasizes that approved grants aim to support further network development and use, strengthen relations between Hedera and its network partners. This is in line with the Council's broader vision to strengthen its ecosystem and encourage the growth of decentralized applications and services on its platform.

The recent announcement of HBAR's additional allocation by the Hedera Council is a demonstration of its proactive approach to strengthening and expanding its network. Because by strategically allocating HBAR for key initiatives, covering operational costs, and providing compensation to early supporters, Hedera demonstrates its commitment to sustainable growth and decentralized governance.