Hedera and Algorand join forces to create DeRec Alliance

• Hedera Council approves USD 408 million in HBAR to drive growth and move towards decentralized governance.
• The allocation will strengthen key initiatives and support ecosystem partners, consolidating Hedera’s position in cryptocurrencies.

In a key decision, the Hedera Council, the governing body of the Hedera network, has given the green light for the allocation of 4.86 billion HBAR (Hedera Hashgraph native cryptocurrency) equivalent to USD 408.2 million. This allocation seeks to strengthen ongoing development and move towards stronger decentralized governance.

The initiative, announced through an official blog post, reflects Hedera’s strategic vision to consolidate its position after a solid performance in 2023, with more than 33 billion real transactions on its network.

A total of 4.86 billion HBAR has been allocated, with 4.248 billion earmarked to strengthen initiatives already underway, such as the HBAR Foundation, the Hashgraph Association and the DLT Science Foundation. These entities play a crucial role in the development and promotion of the Hedera network.

The allocation of funds covers operating costs of the Hedera Council and compensation to buyers of early simple agreement for future tokens (SAFT). This decision demonstrates the Hedera Council’s responsibility and commitment to the community and investors.

The Hedera Council has today announced that it has voted to give the board approval to allocate 4.86 billion HBARs of additional funds toward further development of the Hedera network and enabling its decentralized governance.

The vast majority of that allocation – 4.248 billion…

— Hedera (@hedera) January 12, 2024

Council CFO Betsabe Botaitis announced that scheduled grants to the HBAR Foundation and the Hashgraph Association will be disbursed in the first quarter of the year. In addition, the DLT Science Foundation will receive grants as it reaches critical milestones throughout the year.

Notably, on January 11, the HBAR Foundation and the Algorand Foundation launched the DeRec Alliance, a partnership aimed at establishing a decentralized digital asset recovery system. This initiative demonstrates the collaboration and synergy between the Hedera and Algorand ecosystems in the search for innovative solutions.

The approval of USD 408 million for the growth of the Hedera ecosystem is a strategic step that underscores the long-term vision of the Hedera Council and its commitment to the sustainable development of the Hedera Hashgraph network. With these funds, it is expected to drive innovation, adoption and decentralized governance, further consolidating Hedera’s position in the cryptocurrency market.

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