Hedera Network approves HBAR grant worth $408M for ecosystem development

The Hedera Council, the governing body of the Hedera Network, has approved the allocation of 4.86 billion HBAR — the Hedera Hashgraph native cryptocurrency — for further development and greater decentralization.

In a blog post, Hedera Council announced its decision to allocate 4.86 billion HBARs ($408.2 million) to expand the Hedera network. The lion's share of this allocation will go toward existing initiatives, including 4.248 billion HBARs, the HBAR Foundation, the Hashgraph Association, and the DLT Science Foundation.

This action is in line with Hadera's goal to strengthen its foundation following its 2023 performance, which is characterized by over 33 billion real-world transactions on the network. In addition to supporting ecosystem growth, a portion of the designated HBARs of 614.06 million will be used to cover Hadera Council's operational expenses and to offset early easement agreements for futures token (SAFT) buyers.

Hedera Council has announced today that it has voted to authorize the board to allocate HBR 4.86 billion in additional funds and implement decentralization.

Most of that allocation – 4.248 billion…

— Hedera (@hedera) January 12, 2024

The council's chief financial officer, Betsabe Botaitis, said in a post that the HBAR Foundation and Hashgraph Association grants are scheduled to be disbursed in Q1. At the same time, the DLT Science Foundation receives grants as it achieves milestones throughout the year.

RELATED: 1inch DAO Presents Risks Regarding Decentralization in Legal Teams

Meanwhile, Botaitis highlighted the critical role ecosystem partners are playing in boosting Hedera's rapid adoption. “The Foundation is delighted to continue to strongly support the development of the Hedera Council network and benefit from these new grants,” they said.

The HBAR Foundation and the Algorand Foundation, on January 11, announced the Derrick Alliance through prominent figures in the Hedera and Algorand ecosystems. The alliance aims to create a decentralized recovery system for digital assets.

According to the two decentralized finance (DeFi) executives, the Derrick Alliance aims to streamline the process of protecting and recovering digital assets, aligning with common Web2 practices.

Magazine: MakerDAO plans to bring back ‘DeFi summer' – Rune Christensen