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Hedera Governing Council allocates $5 billion to ecosystem development

Updated: Aug 13, 2024
Published: Sep 16, 2021
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The Hedera Governing Council announced the approval of a plan to provide $5 billion for the development of the Hedera ecosystem.

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The funds will be used to increase the development of the Hedera Ecosystem

The Hedera Governing Council has provided up to 5.35 billion of HBAR which is currently worth $2.5 billion to the newly formed HBAR Foundation. The HBAR Foundation will be able to decide for itself on the management, development, and use of the funds.

The goal is for the foundation to award grants to developers, startups, and other organizations to increase the development and deployment of Hedera Network for applications such as DeFi, NFTs, gaming, and CBDCs.

The remaining funds are going to be used for partnerships and other initiatives which are designed to increase development. The HBAR that is allocated to these initiatives will be deducted from Hedera Treasury accounts.

Hedera's governing council includes a total of 23 organizations

The Hedera Governing Council includes a long list of large technology companies such as Google, IBM, Deutsche Telekom, and TATA Communications, as well as banks such as SHINHAN Bank and Standard Bank. A total of 23 organizations make up the council and are responsible for managing the Hedera network, but also operate nodes. The nodes are hosted by individual council members and are according to Hedera located in every continent except Antarctica.

"We believe that for the Hedera network to reach its full potential as the trust layer of the internet, we must continue its strategy of decentralizing the governance of the ecosystem which started with its unique Hedera Governing Council structure," said Mark Radcliffe, Partner at DLA Piper, a member of the Hedera Governing Council

What is the Hedera Network?

Hedera Hashgraph presents itself as an alternative to blockchain, capable of processing transactions quickly and cheaply. Hashgraph is not a blockchain in the sense that it is built on a chain of blocks. It's best to think of it as a graph where the speed of transaction verification increases as more transactions are added to the network. The name of the technology on which it is based is known as DAG, short for Directed Acyclic Graph.

Hedera Hashgraph claims to achieve the highest possible level of security through a system called aBFT (asynchronous Byzantine fault tolerance) used by nodes, even when malicious actors are present in the network. HBAR is the native cryptocurrency of the Hedera network.

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