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 circulating 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
- Does Hedera use hbars to incentivize developers to build on the Hedera Network?
- What role do hbars play in Hedera’s “proof-of-stake” model?
- What is Hedera's circulating supply of HBAR?
- What are you doing about the price of HBAR?
- Will regulators deem hbars to be securities?
- How will hbars in the Hedera Treasury be staked to nodes?
- Who is responsible for lost or inaccessible hbars?
- What are the official HBAR cryptocurrency denominations?
- Why does the Hedera Hashgraph Council hold so much in treasury? Why are you only selling such a small percentage?
- What is the total supply of coins?