Hedera Council commits billions in HBAR to network development

Acryptoinvest.news: As an important step to support the development of its network, the Hedera Council is allocating an additional 4.86 billion in its native HBAR token.

The board that oversees Hedera's network announced the decision in a Jan. 12 blog post that underscores Hedera's growing commitment to growing the ecosystem.

According to the release, the lion's share of this distribution, 4.248 billion HBAR, will be distributed among existing initiatives, including the HBAR Foundation, Hashgraph Association and DLT Science Foundation.

These funds are scheduled to be disbursed in the first quarter of 2024 to the HBAR Foundation and the Hashgraph Association, and the DLT Science Foundation will receive grants as milestones are met throughout the year.

In addition, the Hedera Council plans to use HBAR 614.06 million for operational expenses and payments for early Simple Agreements for Future Token Buyers (SAFT).

Hedera Council's Chief Financial Officer, Betsabe Botaitis, noted in her announcement the accelerated adoption of the Hedera network in 2023, with more than 33 billion real-world transactions processed.

She attributed much of this success to the key role of Hedera ecosystem partners in bringing applications to market and attracting new users.

With this strong foundation in place, Botaitis confirmed the Hedera Council's commitment to further support the development and use of the network through new grants.

News of the funding comes shortly after the HBAR Foundation unveiled the DeRec Alliance with the Algorand Foundation on January 11. With the goal of developing a decentralized crypto asset recovery system, the alliance aims to simplify the process and bring it in line with traditional web2

The initiative was unveiled during a discussion that included co-founders Lemon Baird of Hedera and John Woods of Algorand (ALGO).

The DeRec Alliance calls for industry-wide collaboration to create standards and open source code for convenient key recovery procedures.

Baird highlighted the participation of banks, credit unions and various wallet software projects, demonstrating that the initiative goes beyond Hedera and Algorand.

The unveiling of an open-source decentralized recovery protocol that uses secret sharing between chosen helpers marks a significant step towards enabling secret recovery without exposing information.