Hedera Council Allocates Additional 4.86 Billion HBAR Tokens
In a move to strengthen its network development, the Hedera Council has decided to allocate an extra 4.86 billion in its native HBAR token. This decision highlights Hedera’s increased commitment to ecosystem development. The majority of this allocation, 4.248 billion HBARs, will be distributed among existing initiatives such as the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation. The funds will be disbursed in the first quarter of 2024 to the HBAR Foundation and Hashgraph Association, while the DLT Science Foundation will receive grants throughout the year based on milestones achieved. Additionally, 614.06 million HBARs will be utilized for operational expenses and payments to early simple agreements for future tokens (SAFT) purchasers.
Hedera Council’s Commitment to Network Development
Hedera Council’s chief financial officer, Betsabe Botaitis, acknowledged the accelerated adoption of the Hedera network in 2023, with over 33 billion real-world transactions processed. She attributed this success to the crucial role played by Hedera ecosystem partners in bringing applications to market and onboarding new users. With a solid foundation in place, Botaitis affirmed the council’s dedication to providing further support through these new grants.
DeRec Alliance and Decentralized Recovery System
The announcement of this funds allocation follows the introduction of the DeRec Alliance by the HBAR Foundation and Algorand Foundation on January 11. The alliance aims to develop a decentralized recovery system for crypto assets that aligns with traditional web2 practices. It seeks industry-wide collaboration to establish standards and open-source codes for user-friendly key recovery procedures. Co-founders Leemon Baird of Hedera and John Woods of Algorand emphasized the participation of banks, credit unions, and various wallet software projects, highlighting the initiative’s broad reach. The unveiling of the Decentralized Recovery open-source protocol, which utilizes secret sharing among selected helpers, is a significant step towards ensuring secret recovery without information exposure.
Hot Take: Hedera Council Bolsters Network Development with Additional HBAR Tokens
The Hedera Council’s decision to allocate an extra 4.86 billion HBAR tokens demonstrates its strong commitment to the development and growth of the Hedera network. By distributing the majority of these tokens among existing initiatives and utilizing others for operational expenses and payments, the council aims to support ecosystem development and encourage further adoption of the network. The announcement comes in conjunction with the introduction of the DeRec Alliance, which seeks to simplify the process of decentralized asset recovery and involve industry-wide collaboration. These initiatives highlight Hedera’s dedication to innovation and advancing blockchain technology.
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