The Hedera Council, responsible for governing the Hedera network, has approved the allocation of 4.86 billion of its native token, HBAR, to advance the network’s development towards decentralized governance. This allocation, valued at $408.2 million, is set to support the growth and enhancement of the Hedera network.
A significant portion of the allocated HBAR, amounting to 4.248 billion, will be directed to existing initiatives including the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation. This distribution reflects the network’s 2023 performance, linked to over 33 billion real-world transactions processed last year, and aims to strengthen its foundation.
Additionally, 614.06 million HBARs have been earmarked to cover operational costs and support developments tied to the progress of the Hedera Council. This funding will aid in compensating for the expenses and advancements that have emerged from the council’s ongoing progression.
Hedera’s financial affairs director, Betsabe Botaitis, announced that grants for the HBAR Foundation and Hashgraph Association are planned for the first quarter, while the DLT Science Foundation will continue to receive funds throughout the year upon reaching certain levels. Botaitis emphasized the existing partners’ role in the adoption process of Hedera and expressed pleasure in supporting network development and usage through these new grants.
Moreover, the HBAR Foundation and Algorand Foundation have announced the formation of the DeRec Alliance on January 11, aiming to create a decentralized recovery system for crypto assets. Amidst these developments, the overall cryptocurrency market experienced a downturn, with HBAR losing over 5.5% and trading at $0.07946.