Hedera Becomes Premier Member of LF Decentralized Trust: Bullish Signal for HBAR?

• Hedera has become a founding Premier Member of the newly launched LF Decentralized Trust, donating its full source code, including the hashgraph consensus algorithm, to the open-source foundation.
• The potential adoption of Hedera’s network through the open-source “Hiero” project could drive enterprise and developer interest.

On September 16, 2024, Hedera took a significant step in its commitment to decentralization as it became a founding Premier Member of the newly launched LF Decentralized Trust. Charles Adkins, President of Hedera, made the announcement in a public address. 

Adkins also outlined the company’s role in contributing the entire source code to the foundation. Additionally, this move is likely to have potential implications for the price of Hedera’s native token, HBAR. As of press time, Hedera’s native token HBAR is trading 2.42% down at $0.05014 with a market cap of $1.8 billion and trading volumes shooting up by 48%. 

A Look At Hedera’s Contribution To The Trust

Hedera’s contribution to the LF Decentralized Trust is historic. The company has donated its full source code, including the hashgraph consensus algorithm and essential tools, to the new open-source foundation.

The project will live under the name of “Hiero” within the Linux Foundation’s decentralized technology initiative. According to Adkins, Hiero “marks the first time in history a public blockchain has donated its full codebase to an independent foundation.” 

Furthermore, the LF Decentralized Trust aims to provide a secure, transparent, and collaborative environment for blockchain, ledger, identity, and interoperability technologies. As reported by CNF, this mission aligns with Hedera’s vision for decentralization and global collaboration.

In his speech, Adkins also emphasized that the move was a natural evolution of Hedera’s core values. He stated,

We are setting a new precedent for other blockchain ecosystems—one where cooperation triumphs over competition and where openness builds trust.

Hedera’s partnership with the Linux Foundation also extends to its governance structure. The company will sit on the Governing Board of LF Decentralized Trust alongside other major industry players like Accenture, DTCC, and Hitachi. This collaboration aims to guide the future of decentralized systems and ensure widespread adoption. Last month, Hedera entered into a collaboration with Copper in order to drive institutional adoption of the platform, per the CNF report. 

HBAR Price Impact

With Hiero, the Linux Foundation now has access to the full suite of Hedera’s core network software, including wallets, decentralized exchanges (DEXes), SDKs, and cryptographic solutions. This could attract more developers and enterprises to the Hedera network.

Moreover, it could potentially increase the adoption and strengthen the use cases for the HBAR token. Adkins noted, “Hiero will foster a rich ecosystem of developers, innovators, and enterprises, driving forward critical applications for the Hedera network.”

The potential impact on HBAR price is noteworthy. With more developers and enterprises entering the Hedera ecosystem through the open-source Hiero project, demand for HBAR tokens could increase. This could lead to higher liquidity and trading volume, possibly pushing the token’s value upward.

However, the token’s price will also depend on market sentiment and broader crypto market conditions. Nonetheless, it’s important to note that Hedera’s donation to the LF Decentralized Trust could also attract institutional interest. 

Also, Hiero’s open-source nature could lower the barriers to enterprise adoption. This may enhance further integration of Hedera’s technology in sectors like finance, supply chain management, and data security. Thus, this increased utility of the network could, in turn, support long-term value growth for HBAR.