Each Hedera Council member purchases its membership interest in Hedera Hashgraph, LLC for a capital contribution of US$100. Each Hedera Council member’s membership interest is an ownership interest in Hedera Hashgraph, LLC, and together with all of Council members’ interests represent 100 percent of the ownership. These membership interests are not typical equity interests, though, as they do not provide members with the right to receive profits distributions or the right to receive any proceeds upon a sale or dissolution of Hedera Hashgraph, LLC. In addition, Council members do not receive any Hedera coins (hbars) in exchange for their capital contribution. Finally, when a member departs the Council, Hedera will repurchase the departing member’s interests for US$100. Thus, the “at what valuation?” question does not make sense in this context. The intent is for Council members to serve as stewards of the Hedera network, which is why Council membership is term-limited and does not include significant financial investments or profit-related incentives for Council members.
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Articles in this section
- Who can serve on Hedera’s Board of Directors?
- What happens if a Director’s employment status or affiliation with a Council member changes during the Director’s term?
- Are Hedera Committee Chairs required to be affiliated with Council members?
- Why did Hedera create a new role of President, and what does it mean that Brett McDowell is now the Chair and President?
- When will the payments be made from Hedera to Swirlds Labs, as part of the previously announced outsourcing agreement?
- Board Compensation at Hedera
- How would Hedera comply with a Government sanction?
- Can the Council freeze an account or roll back a transaction?
- Can Hedera pursue Central Bank Digital Currency Initiatives?
- How does Hedera address perceived or actual conflicts of interest between Hedera and individual Council members?