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.
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:
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.
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.