Hedera (HBAR) Ecosystem Gets $5 Billion Boost from Governing Council

Divya  |  Sep 17, 2021

The Hedera Governing Council has earmarked 10.7 billion HBAR tokens (equivalent to $5 billion at the time of writing) for the development of the Hedera ecosystem.

Hedera Governing Council Allocates $5 Billion for Its Ecosystem Development

On September 16, the Hedera Governing Council announced that it is earmarking 20% of HBAR token’s total supply for the development of its ecosystem. The resolution pertaining to this decision was approved on July 14, when the value of 10.7 billion HBAR tokens was $2 billion.

Almost half of the allocation will go towards the newly established HBAR Foundation, which will provide grants to developers, startups, and other organizations to build on the network. Hedera’s team is looking to expand the network’s applications in decentralized finance (DeFi), non-fungible tokens (NFTs), Central Bank Digital Currencies (CBDCs), gaming, and other industries.

Explaining the significance of HBAR Foundation its Executive Director and CEO Shayne Higdon said:

“The Hedera network is the most widely used public ledger in the world, and with the establishment of the HBAR Foundation, we aim to drive exponential adoption, growth, and value. Our mission is to fund a future where entrepreneurs form digitally-native economies and ecosystems, controlling their own assets, identities, data, marketplaces, and more.”

According to Hedera’s statement, the remaining funds will be diverted to partnerships and initiatives to strengthen the ecosystem. The tokens for these activities will be moved from Hedera Treasury accounts.

Hedera Prices Surge Over 100% in Last Month

The HBAR cryptocurrency has surged nearly 109% in the last month, owing to various developments in the protocol. At the time of writing, HBAR’s market capitalization is above $4.6 billion, which is higher than many popular projects such as Iota, Axie Infinity, and Shiba Inu.

Hedera, which runs on a distributed consensus algorithm called Hashgraph, recently introduced NFT minting capabilities to its mainnet. The upgrade was part of 10 improvement proposals that were submitted by Hedera’s developer community at the beginning of this year.

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