The Hedera Global Board of Directors, which oversees the Hedera network, recently announced significant movement in the cryptocurrency space. It approved the distribution of 4.86 billion Hedera (HBAR) — the network’s native cryptocurrency — valued at approximately $408 million, aimed at further development and advancement of decentralized governance.
This strategic decision is in line with Hedera’s aim to strengthen its base after its impressive performance in 2023, which saw over 33 billion real-world transactions on the network. The lion’s share of the funds, amounting to 4.248 billion HBAR, have been earmarked for existing initiatives such as the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation.
In addition, a portion of the allocation, exactly 614.06 million HBAR, is intended for the operating costs of the Hedera Council and to compensate for early Simple Agreements for Future Token Purchasers (SAFT). This underlines the council’s commitment to operational efficiency and rewarding early adopters of the network.
The council’s chief financial officer, Bethsabe Botaitis, outlined in a blog post that the grants to the HBAR Foundation and the Hashgraph Association are scheduled to be disbursed in the first quarter of 2024. The DLT Science Foundation will receive its grants when it reaches milestones time of year, highlighting the council’s results-based approach.
Botaitis also highlighted the critical role of ecosystem partners in driving the rapid adoption of Hedera, expressing satisfaction with the foundation established and the council’s willingness to continue supporting the development of the network 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 system for the recovery of digital assets. This means the collaborative efforts within the crypto industry to improve the security and recovery processes of digital assets, aligning them with conventional digital experiences.
This move by the Hedera Council reflects a strategic focus on improving the robustness and governance structures of the Hedera network, preparing it for future growth and expansion in the rapidly evolving cryptocurrency landscape
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