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Where did the $428 m from hbar foundation go?

HBAR Foundation Grants: Where's the Money Gone? | A Closer Look at the Controversy

By

Tomรกs Gonzรกlez

Aug 14, 2025, 09:34 PM

Edited By

Emma Thompson

3 minutes reading time

A visual representation of the HBAR Foundation's $428 million grants with a graph showing stagnant transactions on the Hedera network
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A rising concern among people following the HBAR Foundation is the lack of transparency regarding its grant distribution and overall impact on the Hedera network. Despite claims of $428 million in grants since 2021, doubts remain about any meaningful improvements in network performance or revenue.

Whatโ€™s the Current State?

The Hedera network reportedly generates less than $2 million annually, raising eyebrows over the amount spent on grants. Many people are questioning the effectiveness of these funds. A comment from a prominent user highlights the disconnect: "The grants being paid in HBAR havenโ€™t actually given out $428M and where are the transactions?"

While the HBAR Foundation continues to assert its success through increased grant initiatives, the networkโ€™s transaction performance speaks otherwise. Only an average of 8 transactions per second (TPS) is recorded, raising concerns about the future viability of the network's growth based on grant allocations.

Highlighting the Critics' Stance

Some users are not holding back, stating:

"If you think Hedera's grant strategy was a success, I invite you to review the TPS and revenue numbers."

Critics point to an array of unsatisfactory results despite massive funding. Concerns also arise about the overall grant management, with some believing the foundation has been too loose with their allocations.

The conversation pivots around questions regarding how these funds are being allocated and whether they are genuinely benefiting the community. "Tracking the grants is beneficial for transparency and accountability," suggested a participant, echoing widespread sentiments for better oversight.

The Transparency Problem

Interestingly, discussions also bring up a possible tool for tracking grants, indicating a community-driven need for more transparency. "There was talk of a platform that would allow the community to vote on grants, but what happened to that?" one user pondered. This highlights a gap between the foundation's actions and community engagement, leaving many frustrated and confused.

Sentiment Overview

While some believe the foundation's efforts to build partnerships are commendable, many feel more accountability is necessary.

  • (Affirmative voices) argue that partnerships could eventually bear fruit, assuming proper execution soon.

  • (Critical voices) demand clarity on the effectiveness of existing grants, with a sentiment leaning towards skepticism.

Key Insights

  • ๐Ÿ’ธ $428 million in grants issued since 2021, with less than $2 million in annual revenue

  • โš–๏ธ Transparency in grant management is a growing concern among people

  • ๐Ÿ” "Tracking the grants is beneficial" reflects a demand for accountability

Despite investment efforts and partnerships, the fundamental issue remains: Where is the return on investment for these substantial grants? As the community waits for concrete answers, the uncertainty surrounding the HBAR Foundation's financial management persists.

What will be the next step for the HBAR Foundation? Only time will tell how they address these pressing concerns.

What Lies Ahead for HBAR?

There's a strong chance the HBAR Foundation will face increasing pressure to improve transparency and accountability. As people demand clarity on how grants are being utilized, the foundation may adopt new tracking methods to boost trust within the community. Experts estimate around a 70% likelihood that the organization will implement a community voting system to approve future grants. This shift could enhance collaboration and help the foundation align its strategies with the needs of its supporters. However, if these measures lag, the foundation risks losing credibility, culminating in diminishing support and investment.

Drawing Parallels with the Dot-Com Era

Reflecting on the early 2000s, the tech landscape faced a similar quandary amid rapid growth and outside funding. Many startups received massive capital infusions, only to struggle with returns months later. Companies like Pets.com showcased innovations but lacked a sustainable business model, leading to abrupt closures. Much like those tech pioneers, the HBAR Foundation finds itself in a delicate situation; it has attracted significant interest and investment, yet it must navigate scrutiny over real-world value. If left unchecked, the excitement may fizzle out, echoing the cautionary tales of that time.