The Hedera Council has greenlit the allocation of approximately 5 billion Hedera Hashgraph’s native HBAR tokens to further development and decentralized governance. This strategic move is part of Hedera’s commitment to support key initiatives critical for the network’s growth and ecosystem enhancement.
A significant portion of the allocation, 4.248 billion HBAR, will go to existing initiatives including the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation. Hedera’s CFO, Betsabe Botaitis, indicated that grants for the HBAR Foundation and Hashgraph Association are scheduled for the first quarter, while the DLT Science Foundation will receive funds upon reaching milestones throughout the year.
Botaitis highlighted the vital role of ecosystem partners in Hedera’s rapid adoption and expressed satisfaction with the new grants aimed at further supporting the network’s development and usage. This follows a strong 2023 for Hedera, with over 33 billion real-world transactions on the network.
Additionally, 614.06 million HBAR will be used for Hedera Council’s operational expenses and payments to early SAFT (Simple Agreement for Future Tokens) investors. Despite a mixed trend in the crypto market on January 13th and a 6% drop in Bitcoin‘s price, altcoins showed strength, with HBAR’s price decreasing by 5.19% to $0.08009 and its trading volume increasing by 5%.
Market observers note that Hedera’s recent financial commitment positions it as a significant player in the industry, potentially driving the altcoin’s price. The proactive approach to strengthen the ecosystem and advance decentralized governance is expected to lead to an increase in innovative projects and developments on the Hedera network in the coming months.