HBAR Jumps On USD 5.7B Promise From Hedera Hashgraph
The Hedera Governing Council, the group of 23 organizations across the world responsible for governing the Hedera Hashgraph network, announced the approval of a plan to allocate HBAR 10.7bn, currently worth some USD 5.66bn, towards the development of the Hedera ecosystem.
HBAR showed an abrupt movement upwards today, correcting lower soon afterward. At 14:30 UTC, its price was unchanged in the past 24 hours, trading at nearly USD 0.53. It is up 67% in the past week and 117% over the past month.
Per the press release, this investment is worth is approximately 20% of HBAR’s total supply. “The resolution was approved at the July 14th Governing Council meeting, at which time the value of the allocation was approximately [USD] 2 billion,” it added.
The Council initially reserved up to HBAR 5.35bn, worth some USD 2.83bn to the newly established independent HBAR Foundation, which they say will have autonomy over the administration, development, and deployment of its HBAR distributions, in addition to providing grants to developers, startups, and other organizations.
The aim of these actions is to accelerate the development and adoption of the Hedera network for various applications in a number of industries, including decentralized finance (DeFi), non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and gaming.
The rest of the mentioned allocation is reserved for “partnerships and other initiatives designed to strengthen the development of the Hedera ecosystem,” while the HBAR meant for this purpose will be moved from Hedera Treasury accounts.
“Our mission is to fund a future where entrepreneurs form digitally-native economies and ecosystems, controlling their own assets, identities, data, marketplaces, and more,” said Shayne Higdon, Executive Director and CEO of the HBAR Foundation.
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