First, Hedera announced the approval of a plan to allocate 10.7 billion hbars (approximately 20% of total supply) towards the development of the Hedera ecosystem, initially earmarking up to 5.35 billion hbars to the newly established independent HBAR Foundation. Of that amount, 2.54 billion hbars were to be transferred to an account controlled by the HBAR Foundation as soon as practicable pending the finalization of definitive legal agreements. All of September 2021’s distributions are included in the Q3 2021 section of the Hedera Treasury Management Report. The HBAR Foundation will have autonomy over the administration, development, and deployment of its subsequent hbar distributions in providing grants to developers, startups, and others to accelerate the development and adoption of the Hedera network. It is expected that the HBAR Foundation will disclose additional information regarding their subsequent distribution schedules in the future, and such schedules will reflect a careful release of hbar to grant recipients over a long period of time.
Second, Hedera launched the Hedera Treasury Management Report, a dynamic website detailing when and why pre-minted hbars are released to an individual or entity other than Hedera. Importantly, the report only quantifies “released” supply, and Hedera no longer defines a single “circulating” supply amount. The effect of this new reporting methodology will likely be an increase in the amount of hbars considered “circulating” by market research and data reporting companies, because some accounts controlled by an individual or entity other than Hedera previous classified as “non-circulating” are now considered “released.” Importantly, any such increase due solely to these changes does not reflect a change in state of any particular hbars or their availability to be bought, sold, or used. The new report merely captures the current state of all hbars in existence more accurately.