Question
Provide a concise narrative that clearly states each of (a)–(e) below.
Response
Hedera publicly describes itself as a public distributed ledger built on the hashgraph consensus algorithm, which it presents as fast, fair, secure, and efficient without proof-of-work.
(Source: Hedera Whitepaper, Hashgraph Consensus Algorithm)
The cited materials show that ongoing operations rely on Council-governed treasury management, Council-operated consensus nodes, staking rewards, and ecosystem and open-source development support through Hedera Foundation and Project Hiero.
(Source: Treasury Management, Staking Program, Who We Are, Hiero Turns One, Introducing Hiero)
At a high level, Hedera says nodes gossip transaction information, use virtual voting for consensus, and assign fair timestamps and ordering to transactions. The network account model uses HBAR as the native asset held by accounts and charged for transactions and queries.
(Source: Hashgraph Consensus Algorithm, Accounts, Hedera Council FAQs, Hiero Turns One)
The cited materials show that HBAR's primary public functions are paying transaction and query fees, serving as the native asset held by accounts, and contributing to staking-based consensus weight and rewards.
(Source: Accounts, Staking Program, Hedera Council FAQs)
The cited materials show that the control surface relies on Hedera Council governance rather than tokenholder-wide onchain voting. Council members participate in governance, operate nodes, cryptographically sign transactions, and can change total supply only by unanimous consent.
(Source: Hedera Council FAQs, Treasury Management, Introducing Hiero)
Question
For each existing entity: Labs/DevCo (e.g., Founder, CEO, CTO, COO), Foundation (e.g., President, Executive Director, CFO, COO), and DAO / onchain governance leadership (if applicable) list the: (a) full names, (b) official titles, (c) and prior experience of key team members. For any non-existent entity, explicitly mention it does not exist. External links may be included but they will not factor into the score.
Response
Full Name | Entity | Official Title | Prior Experience |
|---|---|---|---|
Eric Piscini | Labs | Chief Executive Officer of Hashgraph | Hashgraph says Eric Piscini previously held executive and management roles at IBM Watson Health, Emerging Business Networks, Deloitte, and Citizens Reserve. |
Dr. Leemon Baird | Foundation | Co-founder and Chief Scientist at Hashgraph. | Hashgraph says Dr. Leemon Baird invented the distributed hashgraph consensus algorithm, co-founded Hedera with Mance Harmon, served as Professor of Computer Science at the U.S. Air Force Academy, and earned a PhD in Computer Science from Carnegie Mellon University. |
Mance Harmon | Foundation | Co-founder of Hedera and Chairman of the Board at Hashgraph. | Hashgraph says Mance Harmon previously led startups, served as Head of Architecture and Labs at Ping Identity, managed product security, and taught cybersecurity at the U.S. Air Force Academy. |
Tom Sylvester | DAO | President of Hedera Council | Hedera states that Tom Sylvester joined Hedera's legal team in 2018 and helped shape the legal, governance, and strategic frameworks used in Council governance. |
Mance Harmon | DAO | Chairman of Hedera Council and Chairman of Hashgraph | The cited materials identify Mance Harmon as a co-founder of Hedera and one of the founders of the Swirlds entity that formed the initial Council member. |
Blockworks note: The cited materials do not identify a DAO executive structure. The closest public governance-leadership surface is Hedera Council. |
Question
Provide a structured description of the DAO's governance, powers, and economic rights. If a DAO does not exist, state so. Address the lettered items below. Even if there is no DAO, there must be an answer to (d).
Response
The cited materials do not describe Hedera as having a DAO or DAO-controlled legal wrapper. No public data found in cited sources regarding DAO-specific IP ownership or control.
(Source: Treasury Management, Hiero at LF Decentralized Trust)
The public governance surface is Hedera Council, a Delaware LLC formed to act as the governing body for the Hedera Network. Public sources say each Council member has one vote on matters submitted for member votes, the Board oversees management and operations, and Council members participate in governance, operate nodes, and cryptographically sign transactions. The public LLC Agreement also says at least 80% of members may approve required capital contributions for extraordinary expenses or similar liabilities.
(Source: LLC Agreement, Hedera Council FAQs, Treasury Management)
HBAR staking can increase a node's consensus weight and generate rewards, but the staking program says there is no lock-up period, no bonding, and no slashing. The cited materials in this run do not identify token-locking-based governance rights for HBAR holders.
(Source: Staking Program, Hedera Council FAQs)
No DAO exists in the public record. The public Council LLC Agreement says the Council makes no distributions other than in conjunction with final liquidation, but cited materials do not identify DAO-level revenue distribution or treasury-rights for tokenholders.
(Source: LLC Agreement, Hedera Council FAQs)
No public DAO dissolution mechanism was identified in cited sources because the reviewed governance model is Hedera Council rather than a DAO.
(Source: LLC Agreement, Hedera Council FAQs)
Question
For the Primary Foundation do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist.
Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
Response
The public record identifies Hedera Foundation as an independent entity, rebranded from The HBAR Foundation, and publicly identifies the website operator as Hedera Foundation SEZC. Hedera Foundation publicly describes itself as focused on community-driven retail innovation, institutional adoption, funding opportunities, tokenization, AI, DeFi, and builder support on the Hedera network. No public data found in cited sources for the nonpublic items requested in section 4(a)-(f), including detailed jurisdiction, IP/control rights, powers over treasury or DevCo, admin authorities, or current distribution policies beyond the public ecosystem-support mission.
N/A
N/A
N/A
N/A
N/A
Question
For the Primary DevCo do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist.
Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
Response
The cited materials now identify Hashgraph, formerly Swirlds Labs, as the clearest current DevCo-like operating company in the Hedera ecosystem. Hashgraph says it employs more than 140 professionals across 20 countries and leads product innovation, technical development, and marketing initiatives geared at growing the Hedera ecosystem. The cited materials also say Hedera contributed the entirety of its source code to LF Decentralized Trust as Project Hiero, while operational governance of the network remains with Hedera Council. Current treasury reporting says Network Governance and Operations includes HBAR used as compensation to founders, executives, employees, and contractors, but cited materials still do not provide the nonpublic power and economic details requested in section 5(a)-(f), including detailed powers over the treasury, Foundation, protocol-controlled resources, or token administration.
(Source: Hashgraph About, Hello Hashgraph, Hedera Council FAQs, Treasury Management, Hiero at LF Decentralized Trust,)
N/A
N/A
N/A
N/A
N/A
Question
Disclose launch and initial supply details in a single initial allocation schedule covering the token's launch.
Response
Current public sources say Hedera launched in August 2018 with a fixed total supply of 50 billion HBAR minted into Treasury accounts. Hedera's economics paper says that before open access almost all HBAR remained in Treasury except 6.7 million HBAR distributed to early users for community testing. The public record still does not provide a precise locked-versus-unlocked split for the August 2018 launch date itself. For public SAFT release detail, the later Series 1 schedule released 2% on the date of Open Access, 2% in the following seven days, and the remainder through September 2023; the later Series 2 schedule released 5% on the date of Open Access, 5% in the following seven days, and the remainder through September 2022.
Launch-era public distribution guidance said the expected initial token distribution was approximately 65% Hedera Council Treasury, 17% Hedera management and employees, 13% SAFT purchasers and developers, and 5% Swirlds. Hedera's economics paper adds that, when public access opened on September 16, 2019, approximately 46% of the 50 billion HBAR had been allocated and 54% remained in Treasury. Current treasury reporting groups supply into Initial Development Costs and Licensing (7.77%), Purchase Agreements (25.40%), Network Governance and Operations (16.23%), and Ecosystem and Open Source Development (50.61%). (Source: Hedera accredited crowdsale FAQ, HBAR Economics, Treasury Management)
The cited materials identify SAFT prices of $0.12 per token and $0.096 per token under two accredited-crowdsale release options, but the public record for this run does not identify a single fixed public TGE price at open access. (Source: Hedera accredited crowdsale FAQ)
The ticker / market symbol is HBAR. (Source: Accounts, CoinGecko HBAR)
Public treasury reporting says HBAR has a fixed total supply of 50 billion and that any supply change would require unanimous consent of the Hedera Council. (Source: Treasury Management, Staking Program)
Public launch materials describe staged release schedules rather than immediate full unlocks: crowdsale Option A released 20% six months after network launch and 10% monthly over the next eight months, while Option B released 20% six months after network launch and 20% yearly over the next four years. The HBAR economics paper says SAFT 3A distributed monthly over 9 months, SAFT 2 monthly over 3 years, SAFT 1 quarterly over 4 years, and SAFT 3B annually over 4 years. The same paper says Dr. Baird and Mr. Harmon each had a 2 billion HBAR coin grant vesting over six years, and that restricted coin unit grants to employees and contractors typically followed a four-year vesting schedule with a one-year cliff and monthly vesting thereafter. (Source: Hedera accredited crowdsale FAQ, HBAR Economics, Hedera Council FAQs)
Question
Address each of the following sub-items based on the project's airdrop status. If a sub-item does not apply to the project's situation, state that explicitly.
Response
Planned but not yet executed airdrop: This sub-item does not apply. Hedera has no planned or pending TGE airdrop. The 50 billion HBAR total supply was fully minted at network launch on August 24, 2018, and distribution occurs through Council-governed treasury releases rather than an airdrop.
(Source: Treasury Management, Hedera accredited crowdsale FAQ)
Executed airdrop: This sub-item does not apply. Hedera has never executed an airdrop, and no per-address airdrop dataset exists because no airdrop occurred.
(Source: Hedera accredited crowdsale FAQ)
No airdrop planned or conducted: Hedera has never conducted an airdrop to date and does not plan to execute one. Hedera's 2018 crowdsale FAQ stated the project did not expect to have an airdrop and instead contemplated testing programs where community members could earn tokens for testing the network or participating in hackathons, regulations permitting.
(Source: Hedera accredited crowdsale FAQ)
Blockworks note: Hedera executed the earn-through-testing approach by releasing 6.7 million HBAR to early users through its community testing program before Open Access on September 16, 2019. These distributions were earned incentive payments for network testing, not an airdrop, and are classified under the Community Incentive Program within the Ecosystem and Open Source Development allocation category in the Council treasury report.
(Source: Hedera Council FAQs, Treasury Management)
Question
Projects must disclose all material terms of market-making arrangements that affect token liquidity. If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. For each market maker, include in a table:
If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. If no native tokens were loaned or allocated to market makers, state that explicitly; cash/fiat retainers or fees are not required for this item.
Response
Blockworks note: Hedera has not publicly disclosed any market maker agreements, token allocations to market makers, or token loans to market makers. The Council treasury report does not include a market maker allocation category.
(Source: Treasury Management)
Question
Projects must disclose all material terms of centralized or decentralized exchange listings that affect token liquidity. For each listing, include in a table:
If the project has no agreements or deals with CEX or DEX, state that explicitly; doing so earns full credit; cash/fiat fee amounts are not required for this item.
Response
Blockworks note: Hedera has not publicly disclosed any CEX or DEX listing agreements, token allocations committed for listings, or listing fees paid in HBAR. The Council treasury report does not include an exchange listing allocation category.
(Source: Treasury Management)
Question
Disclose all prior token sales by the Project — including fundraising rounds, any material OTC sales to investors, and any discounted market-maker sales. For each sale, provide:
If no prior sales occurred, state that explicitly (e.g., "No prior fundraising, OTC, or discounted MM sales have occurred.").
Response
Blockworks note: (Source: Hedera Council FAQs, HBAR Economics, Treasury Management)
Question
If any, list prior exploits or incidents that directly affected the token, token supply, tokenholder balances, token contract, minting controls, burn mechanics, or custody of token supply. This question is not asking about general protocol, application, or smart contract exploits unless the incident directly affected the native token itself.
If no prior incidents, state this explicitly (e.g., "No exploits affecting tokenholders or protocol funds as of YYYY-MM-DD").
Response
On March 9, 2023, an attacker exploited Hedera mainnet Smart Contract Service code and targeted HTS tokens held by certain DEX liquidity-pool accounts.
(Source: Precompile Attack Postmortem)
Hedera said the attacker exploited a bug in precompiled-contract behavior so a smart contract using delegatecall could gain unauthorized withdrawal rights over targeted DEX pools.
(Source: Precompile Attack Postmortem)
Hedera said the assets stolen before containment were valued at just under $600,000 and included 1,001 DAI, 66,997 USDT, 287,998 USDC, and 3,630,000 WHBAR across multiple accounts and DEXs.
(Source: Precompile Attack Postmortem)
Hedera said DEXs and bridges worked to stop bridge flows, Hedera DevOps shut off proxy access to mainnet at 20:18 UTC on March 9, 2023, maintainers developed and tested a fix within 13 hours, and Council node operators signed transactions to update the network code.
(Source: Precompile Attack Postmortem)
Hedera said the mainnet upgrade completed at 02:04 UTC on March 11, 2023 and permanently prevented a smart contract from using delegatecall to invoke the HTS precompile.
(Source: Precompile Attack Postmortem)
Official postmortem is at Analysis & Remediation of the Precompile Attack on the Hedera Network.
Question
Describe material risk factors across the three categories below. Each category includes prompts to address at a minimum.
(a) Regulatory, Legal & Tax Risks — Describe how evolving laws and regulations could affect the project by answering, at a minimum, questions like:
Impact of Regulatory Change on TGE and Listings: (If applicable) How could evolving or conflicting laws and regulations affect your ability to complete the TGE, deliver tokens to purchasers, and list or maintain the token on trading venues in key jurisdictions?
Entity-Level Regulatory Impact: (If applicable) How could regulatory or legal changes impact your core entities (Foundation, DevCo, DAO, affiliated service providers), including enforcement actions, licensing requirements, or forced changes to structure or operations?
Tokenholder Tax Treatment: (If applicable) What uncertainties exist around how tokenholders may be taxed, and make clear that tokenholders are responsible for understanding their own tax obligations?
Jurisdictional & User Access Restrictions: (If applicable) If the project restricts access for certain jurisdictions or user types (e.g., U.S. persons, sanctioned countries, retail vs. professional), what are those restrictions and what risks do they create for users and for the project?
(b) Protocol, Technology & Security Risks — Describe risks to network and contract reliability, correctness, and safety by answering, at a minimum, questions like:
Bugs and Design Flaws: (If applicable) What bugs, design flaws, or implementation errors could exist in your core protocol code, smart contracts, and any bridges, rollups, or oracles that you depend on, and how could these lead to loss of funds or disruption of the protocol?
Security Measures & Their Limitations: (If applicable) What security measures have you taken (audits, formal verification, bug bounties), and what types of failures might these measures still fail to detect or prevent?
(c) Token Economics, Unlocks & Incentive Risks — Describe how the token's economic design and supply schedule could affect holders by answering, at a minimum, questions like:
Critical Economic Assumptions: (If applicable) Which economic assumptions (e.g., staking yields, fee revenue, liquidity incentives, MEV capture, demand for blockspace) are critical for protocol security, utility, and governance, and what happens if those assumptions fail?
Governance Control over Monetary Policy & Rewards: (If applicable) To what extent can governance change monetary policy, fee parameters, or reward allocations (e.g., inflation rate, treasury flows, incentive programs), and how could such changes adversely affect tokenholders?
Response
Impact of Regulatory Change on TGE and Listings
Hedera's own launch-era fundraising materials show that SAFT sales were limited to accredited investors and withheld from jurisdictions where legal counsel believed local law could create offering or token-sale risk. That public history suggests future regulatory divergence could affect token delivery, fundraising structure, and listing or maintenance in particular jurisdictions.
(Source: Hedera accredited crowdsale FAQ, Treasury Management)
Entity-Level Regulatory Impact
The cited materials show a multi-entity structure that includes Hedera Council, Hedera Foundation, and ecosystem contributors such as Hashgraph. Changes in securities, commodities, sanctions, privacy, or local operating rules could force changes to grant programs, market access, or how these entities interact with users and builders.
(Source: Hedera Council FAQs, Hedera Foundation Terms, A New Era For Hedera, Terms)
Tokenholder Tax Treatment
The cited materials in this run did not identify project-authored tokenholder tax guidance, and the public terms frame HBAR use as subject to applicable law rather than offering user-specific tax guidance. That leaves tokenholders to assess their own tax obligations without project-specific public instructions in the reviewed source set.
(Source: Terms)
Jurisdictional and User Access Restrictions
Public fundraising materials said the SAFT was offered in 63 countries and not offered where legal counsel saw elevated legal risk, and Hedera's terms reserve access restrictions tied to law, sanctions, and security. Those restrictions can limit user access and create jurisdiction-specific onboarding and listing risk.
(Source: Hedera accredited crowdsale FAQ, Terms)
Bugs and Design Flaws
The March 2023 precompile attack shows that implementation flaws in the Smart Contract Service / HTS integration could let an attacker obtain unauthorized withdrawal rights over DEX liquidity pools and drain bridged or DEX-held assets. Hedera said the stolen tokens were valued at just under $600,000 before containment.
(Source: Precompile Attack Postmortem)
Security Measures & Their Limitations
The cited materials show Hedera runs a bug bounty program, publishes audit and standards materials, and open-sourced the codebase through Hiero, but the precompile incident itself shows that bug bounties, audits, and open-source review do not prevent every design or implementation flaw from reaching production.
(Source: Bug Bounty Program, Audits and Standards, Introducing Hiero, Precompile Attack Postmortem)
Critical Economic Assumptions
HBAR utility and network incentives rely on continued demand for transaction processing, fee collection, and staking participation. Public staking and treasury materials show rewards are funded through network fee flows and council-managed allocations, so weaker usage or misaligned incentives could reduce reward attractiveness and slow ecosystem growth.
(Source: Staking Program, Treasury Management)
Governance Control over Monetary Policy & Rewards
Public sources show the total supply is fixed at 50 billion HBAR unless the Hedera Council unanimously consents to change it, and council governance surfaces say the Coin Economics & Treasury Management Committee advises on treasury, pricing, and economic incentive structures including staking and node operations. That means governance decisions can materially affect treasury deployment, pricing, and reward mechanics even if total supply remains fixed.
(Source: Treasury Management, About Governance, Hedera Council FAQs)
Question
Identify to the best of your ability the token's current deployments across chains, including project-issued deployments, project-endorsed representations, and, if possible, documented third-party wrapped or bridged representations.
For each entry, provide:
Multiple entries on the same chain are permitted.
Definition: A protocol-level asset is an asset whose balances and transfers are handled directly by the blockchain's core rules, rather than by a token smart contract. For protocol-level assets without a token contract address, enter "No contract address" and identify the asset and chain.
Response
Token Contract Address or Onchain Asset Identifier | Chain | Deployment Type | Project Relationship | Supporting Source |
|---|---|---|---|---|
hedera:mainnet/slip44:3030 | Hedera | Protocol-level asset | native-token |
This Token Transparency Filing is provided for general informational purposes only and does not verify or warrant the accuracy of individual answers.
