The Hedera network reaches consensus on transactions through a coin-weighted process, in which a particular transaction becomes final when nodes holding an aggregate of over two-thirds of coins have contributed to consensus. This means that an attacker could disrupt the network by owning or controlling one third of the coins. This is the reason that Hedera Hashgraph, LLC has a very slow coin release schedule. By having more than two thirds of coins held by Hedera Hashgraph, LLC in its treasury account for the first several years and proxy-staked to trusted nodes, an attacker cannot gain control of the one third needed for an attack. And if the coins are released slowly, then by the time they have all been released, it will be difficult for an attacker to gain control of a full third of them. To protect the Hedera network from this type of attack, we anticipate that the released supply of hbars will remain below 10% of the total hbar supply for the first year and below 33% of the total hbar supply for four-to-five years.
Articles in this section
- Why did the “circulating supply” of hbars increase in September of 2021?
- What is “illiquid supply?”
- Why doesn’t Hedera use the term “circulating supply” in its Treasury Management Report?
- Is there a whitepaper detailing Hedera's HBAR economics in detail?
- What is the total supply of HBAR?
- What is Hedera's circulating supply of HBAR?
- When are the next distributions of hbars scheduled?
- Will regulators deem hbars to be securities?
- Why does the Hedera Hashgraph Council hold so much in treasury? Why are you only selling such a small percentage?