TL;DR
- Hedera Global Governing Council greenlights 4.86 billion HBAR tokens for developing and advancing decentralized governance.
- The allocated funds will strengthen its base, given Hedera’s 2023 performance, where it hit over 33 billion real-world transactions.
Hedera Approves Nearly 5B HBAR Tokens for Network Growth
Hedera Global Governing Council approves allocating nearly 5 billion Hedera (HBAR) to develop and advance decentralized governance.
In a blog post, the council that oversees the Hedera public ledger stated that the lion’s share of the allocated funds will go towards existing projects.
The 4.248 billion HBAR will cater to the Hashgraph Association, the DLT Science Foundation, and the HBAR Foundation.
Notably, the network aims to build on its resilient 2023 performance, registering over 33 billion real-world transactions.
Apart from growing its ecosystem, the remaining 614.06 million HBAR will fund operational costs and compensate agreements for future token buyers.
CFO Betsabe Botaitis reiterated that HBAR Foundation and Hashgraph Association funds will be released in Q1.
Conversely, the Distributed Ledger Technology (DLT) Science Foundation will receive grants as they hit essential milestones this year.
She went on to say that its ecosystem partners play a crucial role in driving Hedera’s rapid adoption.
2023 saw the accelerated adoption of the Hedera Network, with more than 33 billion real-world transactions on the network. The ecosystem partners played a crucial role in helping the application to go to market and onboard new users. With this foundation solidly in place, the Hedera Council is pleased to support further the development and utilization of the network with these new grants.
Hedera Council’s CFO, Betsabe Botaitis, stated.
New Alliance for Decentralized Wallet Recovery System
The news comes after the Algorand and HBAR Foundation unveiled the DeRec Alliance on Jan. 11, 2024.
Interestingly, the blockchain ecosystem aims to create a decentralized recovery system for digital assets.
Moreover, it will streamline and recover crypto assets to ensure they align with conventional digital experiences.
The DeRec Alliance and the Decentralized Recovery (DeRec) open-source protocol were unveiled together.
Notably, it’s the standardized way of secret management. The vision of secret sharing among helpers allows users to recover their secrets when necessary.
Each helper’s share will not reveal information about the original secret—the system ensures recovery despite a user losing their recovery service.
More and more networks are trying to improve the blockchain experience.
Recently, Abitrium DAO approved a $23M backfund for diverse projects. Many of these will incentivize and develop the Ethereum Layer 2 network applications.
Price of HBAR Tokens on the Market Today
Hedera’s Council announcement may kickstart a positive Hedera (HBAR) trend. Its token is trading at $0.0795, recording an intraday decline of roughly 5.50%.
Its market capitalization dropped by 5.50% in the same period and currently stands at $2.67B.
Even though Hedera is experiencing declines, its token trading volume uptrends by about 16% and stands at $53.27M.
HBAR tokens registered its all-time trading high of $0.5701 on Sept. 21, 2021.
Looking at Hedera in the past 365 days, the Network adoption is quite low, and the total accounts created on Hedera stands at 2.54 million.
In addition, the number of active accounts hit the 1.39 million mark. Will the new developments register further gains on Hedera (HBAR)?
Shawn Munir
Shawn Munir is the CEO of Coinweb.com and spearheads all the collaborative partnerships for the platform. He bought his first Bitcoin in 2017 and never looked back. He is also an investor in 200+ Web3 startups and is considered an expert in the field. Before building Coinweb with his co-founders, he co-founded Presail, a management platform designed for companies and investors to manage their investments in Web 3. In addition to his entrepreneurial endeavors, Shawn serves on the United Nations...
