For detailed information, please view the Hbar Economics whitepaper: https://www.hedera.com/hh-hbar-coin-economics-paper.pdf
At the initial release of hbars at Open Access, only 3.18% of the total supply of hbars will have been released and be in circulation. This is referred to as the circulating supply. At the end of one week after Open Access, 3.59% of the total supply of hbars will have been released and be in circulation.
Hedera has reserved 7.76 billion hbars (15.5% of total supply) to use for grants to employees and 1.45 billion hbars (2.9%) to use for grants to advisors, vendors, and others as compensation. Hbars will be distributed over varying periods of time up to six years after Open Access, with the co-founders and other early senior executives having the longest distribution schedules.
None of the hbars that Hedera’s co-founders, Leemon Baird and Mance Harmon, are receiving as compensation (employee grants) will be released before January 1, 2020. While Leemon and Mance also own SAFTs and will receive some hbars under the SAFTs, they are also further delaying the release of 76% of all of their hbars (whether from SAFTs or grants) until after August 2023 (i.e. after the fifth anniversary of mainnet launch). Other early senior executive employees currently on staff have also agreed that none of the hbars they receive through employee grants will be released before January 1, 2020, and that a substantial portion of their total hbars will be further delayed until after August 2023.
In addition, Hedera’s seed SAFT holders have agreed to a more consistent release schedule, which provides for the vast majority of coins to be released on a frequent basis (between daily and monthly) over the course of three to four years. Instead of 40% of their coins being released on Day 1 of Open Access (based on the original SAFT distribution schedule), early SAFT holders will now receive up to 10% of their coins in the first week after Open Access. The remainder will be stretched out evenly over 36 to 48 months on a regular basis, with no balloon payments. These changes are to spread out distribution of coins to align with expected growth of the network.