Will the Hedera Council provide an additional grant to the HBAR Foundation in connection with the previously announced leadership changes?

On December 20, 2024, The HBAR Foundation and Hedera announced the transition of Charles Adkins from his role as President of Hedera to CEO of the HBAR Foundation.

In connection with this transition, the Hedera Council and HBAR Foundation have executed a non-binding term sheet that contemplates an additional grant of up to 7 billion HBAR to the HBAR Foundation, to be distributed over a period of time. The grant would be used to support a variety of ecosystem development initiatives, including community engagement.

The grant is expected to be structured as a series of distributions, with the first distribution of 50% of the total allocation expected shortly after the definitive agreement is signed. The remaining amounts would be distributed in future tranches, some of which would be contingent upon the Foundation assuming certain responsibilities or obligations, and all as set forth in a definitive agreement between the parties.

The Foundation would be required to provide public annual reports on its grant giving activity and share material updates with the Hedera community on an ongoing basis. As part of this agreement, the HBAR Foundation would also be re-branded as Hedera Foundation.

Hedera will provide a further update after the definitive agreement is signed, which is expected to be in Q1 of 2025.