Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 136

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 136
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 debts or promises, represent ownership of property or a company, move funds in accordance with conditional instructions and create new digital assets. Solidity is one of the most popular programming languages with extensive code libraries designed for building smart contracts, which Hedera’s smart contract services supports.

Development on the Hedera Network involves building more complex tools on top of smart contracts, such as decentralized apps (dApps) and organizations that are autonomous, known as decentralized autonomous organizations (DAOs). For example, a company that distributes charitable donations on behalf of users could hold donated funds in smart contracts that are paid to charities only if the charity satisfies certain pre-defined conditions.

Moreover, the Hedera Network may also been used as a platform for creating new digital assets, although such uses are more prominent on the Hedera Network. More recently, the Hedera Network has been used for decentralized finance (“DeFi”) or open finance platforms, which seek to democratize access to financial services, such as borrowing, lending, custody, trading, derivatives and insurance, by removing third-party intermediaries. DeFi can allow users to lend and earn interest on their digital assets, exchange one digital asset for another and create derivative digital assets such as stablecoins, which are digital assets pegged to a reserve asset such as fiat currency. To the extent that Hedera demonstrates scalability, reliability and security, and is adopted by the public and enterprise actors, DeFi activities may also become material on Hedera.

Creation of HBAR

Unlike other digital assets such as Bitcoin, which are solely created through a progressive mining process, 50 billion HBAR were created in connection with the launch of the Hedera Network. In December, 2024, the Council reaffirmed that the following allocations of HBAR had been made:

Ecosystem and Open Source Development: Approximately 25.2 billion HBAR, or approximately 50.4% of the total supply, was allocated to fund ecosystem growth, incentivize network participants, and support open-source development initiatives.

Purchase Agreements: Approximately 12.7 billion HBAR, or approximately 25.4% of the total supply, was distributed pursuant to purchase agreements with investors.

Network Governance and Operations: Approximately 8.1 billion HBAR, or approximately 16.2% of the total supply, was allocated to support Hedera’s governance framework and operational functions.

Initial Development Costs and Licensing: Approximately 3.9 billion HBAR, or approximately 7.8% of the total supply, was allocated to cover early development expenses and licensing