[Crypto projects](https://revain.org/projects/) › Hedera

# Hedera (HBAR): how it works, supply and reviews

Layer 1 blockchain

## In short

- **Type**: Public distributed ledger using a directed acyclic graph (DAG) rather than a blockchain
- **Maximum supply**: Fixed at 50 billion HBAR
- **Risks and caveats**: Consensus nodes are operated by Council members; Hedera itself describes this as a permissioned model
- **Checked**: 28 October 2026

## Key facts

- **Ticker**: HBAR
- **Category**: Layer 1 blockchain
- **Network**: own blockchain
- **Mining algorithm**: Directed Acyclic Graph (DAG)
- **Official site**: [hedera.com](https://www.hedera.com/)
- **Whitepaper**: [hedera.com/wp-content/uploads/2025/12/hh_whitepaper.pdf](https://hedera.com/wp-content/uploads/2025/12/hh_whitepaper.pdf)
- **Source code**: [github.com/hashgraph](https://github.com/hashgraph)

Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.

## What is Hedera

Hedera is a public proof-of-stake distributed ledger that uses hashgraph consensus instead of a chain of blocks. It offers smart contracts (EVM), native token issuance and a consensus (time-stamping) service, and its native cryptocurrency HBAR pays network fees.

## Network and consensus

| Parameter | Details |
|---|---|
| Type | Public distributed ledger using a directed acyclic graph (DAG) rather than a blockchain |
| Consensus | Hashgraph (gossip about gossip and virtual voting) with proof-of-stake weighting; asynchronous Byzantine fault tolerant |
| Finality | About 3–5 seconds |
| Smart contracts | Yes, Solidity on an EVM based on Besu |
| Launched | Mainnet open access on 16 September 2019 |
| Node operators | Consensus nodes are run by members of the Hedera Council |

## Supply and issuance

| Parameter | Details |
|---|---|
| Maximum supply | Fixed at 50 billion HBAR |
| Initial distribution | Released from the Hedera treasury over a 15-year distribution schedule that began at open access in 2019 |
| Staking rewards | Paid from the staking reward account (0.0.800), funded mainly by a daily share of collected fees; no lock-up or slashing |

## What HBAR is used for

- Paying network fees, which are priced in US dollars and paid in HBAR
- Staking to consensus nodes to add to their consensus weight and earn rewards
- Access to Hedera services such as smart contracts, tokens and the consensus service

## Who develops and governs Hedera

- **Governance**: Hedera Council, a group of up to 39 organisations with equal voting rights and term limits
- **Legal entity**: Council membership is governed by the Hedera Council LLC Agreement
- **Founders**: Dr. Leemon Baird (inventor of hashgraph) and Mance Harmon
- **Open source**: Yes; the codebase was contributed to the Linux Foundation Decentralized Trust as the Hiero project in September 2024

## History

| Date | Event |
|---|---|
| 16 September 2019 | Mainnet opened to the public and HBAR distribution began |
| 19 January 2022 | The Council voted to buy the hashgraph intellectual property from Swirlds and to open-source the code under Apache 2.0 |
| 9 March 2023 | An attacker exploited the Smart Contract Service to take tokens from several DEX accounts; network proxies were disabled and the flaw fixed |
| 16 September 2024 | Hedera contributed its codebase to the Linux Foundation Decentralized Trust, creating the Hiero project |

## Security and audits

- Hashgraph consensus is described as asynchronous Byzantine fault tolerant, with a computer-checked proof in the Coq system
- In March 2023 a Smart Contract Service exploit took tokens worth just under 600,000 US dollars from DEX accounts before it was stopped
- A bug bounty programme rewards responsibly disclosed vulnerabilities

## Risks and caveats

- Consensus nodes are operated by Council members; Hedera itself describes this as a permissioned model
- Large amounts of HBAR were held by the treasury and released under a long-term distribution schedule set by the Council
- Staking rewards depend on the reward account balance and can be lost if a node is removed from the network

## Official links

- Website: [hedera.com](https://hedera.com/)
- Docs: [docs.hedera.com](https://docs.hedera.com/)
- Whitepaper: [hedera.com/hh_whitepaper](https://hedera.com/hh_whitepaper)
- Source code: [github.com/hiero-ledger](https://github.com/hiero-ledger)
- Block explorer: [hashscan.io](https://hashscan.io/)
- Blog: [hedera.com/blog](https://hedera.com/blog)

## Questions and answers

**What is Hedera?**

Hedera is a public proof-of-stake distributed ledger built on hashgraph consensus, offering smart contracts, native tokens and a consensus service; HBAR is its native coin.

**Who created Hedera?**

Hedera was co-founded by Dr. Leemon Baird, who invented the hashgraph algorithm, and Mance Harmon; it is governed by the Hedera Council.

**What is the maximum supply of HBAR?**

The HBAR supply is fixed at 50 billion.

**How does Hedera reach consensus?**

Nodes share transactions by gossip and use virtual voting on the resulting graph, weighted by staked HBAR; finality takes about 3–5 seconds.

**Has Hedera had security incidents?**

Yes. In March 2023 an exploit of the Smart Contract Service took tokens from several DEX accounts; Hedera disabled network proxies and fixed the flaw.

## Sources

- [CoinGecko — Hedera](https://www.coingecko.com/en/coins/hedera-hashgraph)
- [Hedera — What is Hedera?](https://hedera.com/learning/hedera-hashgraph/what-is-hedera-hashgraph)
- [Hedera docs — What is Hedera?](https://docs.hedera.com/learn/getting-started/what-is-hedera)
- [Hedera docs — Staking Program](https://docs.hedera.com/learn/core-concepts/staking/staking)
- [Hedera whitepaper v2.1](https://hedera.com/hh_whitepaper)
- [Hedera — Council](https://hedera.com/council)
- [Hedera — Analysis & Remediation of the Precompile Attack](https://hedera.com/blog/analysis-remediation-of-the-precompile-attack-on-the-hedera-network/)
- [Hedera — Hiero Turns One](https://hedera.com/blog/hiero-turns-one-graduation-and-growth/)

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Page updated: 2026-10-31

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Source: https://revain.org/projects/hedera-hashgraph/