Hedera’s limited, exclusive license to use the hashgraph technology platform under the MLA is perpetual, as long as certain conditions are met. Swirlds may only terminate the MLA upon Hedera’s fraud, illegal activity, insolvency, impossibility of performance (e.g. due to regulatory prohibitions), material breach of its obligations defined in the MLA that have a material adverse effect on Swirlds, or material breach of the Network Operating Rules. Those rules are maintained by the Hedera Technical Steering and Product Committee and include requirements for securely operating the Hedera network, but the MLA provides that they must include, at minimum, the following constraints: (1) Hedera will not increase the total supply of hbars above 50 billion coins; (2) Hedera will establish, update and comply with a published release schedule (which may be amended) for the coins from the Hedera Treasury account to ensure the security of the Hedera network; and (3) the Hedera Technical Steering and Product Committee will establish and require Council members to comply with appropriate procedures for securing private keys and for effecting decisions of Hedera via a multi-signature account.
Articles in this section
- What are the material financial terms of the license agreement between Hedera and Swirlds?
- Can Hedera’s license to use the hashgraph technology be revoked? If so, in what situations?
- Does Hedera have an exclusive license to use the hashgraph technology?
- How much bandwidth overhead does gossip about gossip add to messages?
- Have any non-Carnegie Mellon professors or academics verified hashgraph as asynchronous Byzantine fault tolerant (ABFT)?
- Who generates the timestamp on a transaction?
- What is 'gossip about gossip and 'virtual voting'?
- Why was hashgraph invented?
- Is the hashgraph consensus algorithm patented?
- How can hashgraph deliver consensus without proof-of-work?