According to a press release issued on September 16, the Hedera Governing Council voted to allocate 20% of the total supply of the HBAR token to ecosystem development.
At the time of publication, 10.7 billion HBAR tokens were worth approximately $5 billion.
Half of the funds will go to the HBAR Foundation, which will be in charge of increasing network adoption across various sectors of the cryptocurrency industry.
The remaining funds will be used to secure partnerships and organize various initiatives to strengthen the ecosystem.
According to Shayne Higdon, the foundation’s CEO and executive director, the goal is to create digitally native economies:
We believe that in order for the Hedera network to reach its full potential as the internet’s trust layer, we must continue its strategy of decentralizing ecosystem governance, which began with its unique Hedera Governing Council structure.
Over the last week, the HBAR cryptocurrency has increased by more than 150 percent. With a market capitalization of $5 billion, it has surpassed the market capitalizations of prominent cryptocurrencies such as EOS, Monero, and IOTA.