Hedera Hashgraph is committed to providing transparency to users and developers of the Hedera network. As part of this ongoing commitment, Hedera is improving its reporting of the Hedera Council’s allocation and distribution of their pre-minted supply of hbars by launching the Hedera Treasury Management Report, a dynamic website detailing when and why such pre-minted hbars are released to an individual or entity other than Hedera. Pre-minted hbars refers to the total supply of 50 billion generated at network launch in August of 2018.
Hedera has previously published detailed economic reports and disclosed a wide array of information related to hbars; however, such reports were static and not integrated with each other. Those reports, such as the 2020 Coin Economics Paper, have been deprecated to bring all relevant information to one location in a regularly-updated, user-friendly format.
The Hedera Council Member representatives that serve on the Treasury Management & Token Economics Committee have worked on developing and producing this new format over the past few months. The new Hedera Treasury Management Report includes an allocation report, distribution report, and information about network accounts, and highlights notable released-but-illiquid supply.
The allocation report details the purposes of each pre-minted hbar as decided by the Hedera Council, including the amount of hbars that are yet to be allocated for a particular purpose.
The distribution report details when the allocated hbars are transferred out of a Council- or staff-controlled network account for the first time, i.e., “released” to an individual or entity other than Hedera.
Finally, the network account and illiquid supply information forms the basis of real-time “released” and “circulating” supply calculations.
Importantly, the report only quantifies “released” supply, and Hedera no longer defines a single “circulating” supply amount. Released supply can be considered one possible method of determining circulating supply; however, different market research and data reporting companies may apply different definitions to certain hbars. The report’s illiquid supply information may inform other methods of determining circulating supply, depending on the nature of the known restrictions. If available, the primary source for the restriction and the location of the restricted coins will be cited in the report, but Hedera cannot guarantee the accuracy of any third-party information.
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, as the third-party APIs used to generate real-time data are expected to be updated consistent with the new Hedera Treasury Management Report in the coming days. 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. Other recently announced governance decisions related to hbar distribution and control have additional, larger effects on the amount of released supply.
The Hedera Treasury Management Report is now available here and contains additional information regarding its metholodogy. The report will be comprehensively updated on a quarterly basis and more frequently with respect to network account changes, major Hedera Council governance decisions, and new illiquid supply information, if necessary.