Hedera has admitted that it is working with DLT oriented economics consulting firm Prysm Group to “re-evaluate every aspect of [its] token economic model”, with a view of developing a plan to enable the long-term well-being of the network and associated cryptocurrency.
‘Hedera Network Performance and Token Economics’ – a report published by CEO and co-founder Mance Harmon on Tuesday contains, amongst metrics and insights, this important information regarding the company’s uncertainty regarding the future of its own economy.
Reasons why the company may be seeking to reconsider or change the approach it is taking to its were not immediately made clear in the report and as such, can only be speculated upon.
CoinMarketCap covers HBAR only as far back as its September 17, which is when the first tokens were released to investors and cryptocurrency exchanges. Despite the limited data available, it is clear that the token was heavily dumped immediately and its value has steadily depreciated since.
This post-launch dumping was a bad omen for Hedera, however we have entered the perfect storm with the greater market crash we have seen in the past few days. Another key concern for community members has been centralized nature of Hedera, with regards to governance and token supply.
Take the Hedera Governing Council for example, which is comprised of up to 39 members: responsible for the operation of nodes throughout the Hedera Hashgraph, as well as voting on all important decisions regarding the management and development of the network. All of these members are currently, and intended to be blue chip corporations.
Hedera sends a negative message by admitting its doubt concerning a fundamental element such as its token economy, especially at such a critical stage of the projects evolution.
Other highlights from the Hedera post-OA report include that there have been over 2.2 million transactions conducted on the network over the past week, in addition to the fact that full consensus for the first distribution of 1000+ payments was achieved on the network in under two seconds.
Regarding the statistics published, Harmon stated:
“The Hedera network is delivering the performance that we believed and stated it would. We continue to work with dapps as they conduct a growing number of transactions on the platform.”
Before continuing to clarify that the team is
“committed to doing what it takes to make sure the model is properly aligned to foster widespread developer and user adoption of the platform, and to demonstrating that we deserve the trust you placed in us to get that right.”