VeChain Financial Executive Report vol. 3

Transparency, Fairness, Openness

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We are excited to present the third quarterly VeChain Foundation Financial Executive Report. This is the last report before we enter into the VeChainThor mainnet era, as such the presented VET numbers in this report do not consider the 1:100 token split unless stated otherwise.

This financial report covers the period from February 2018 through April 2018. We sincerely welcome the community to uphold us to this transparency commitment to monitor the funds usage and development process of all aspects within the VeChain Foundation.

VET Supply Overview

By the end of April 2018, the ratio of the circulating VET supply is 61%, which is roughly 2% larger than what was reported in the last quarter financial report.

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  • Enterprise Investors — In the last reporting period, we settled a significant portion of the enterprise investment as this period covered most enterprise investment from the tokens initial offering to the end of the reporting period. In this period (Feb ~ April), VeChain has received even more interest from enterprises, governments, institutions, and others for partnerships and collaboration. However, as VeChain became more impactful in the public industry, we began looking strictly for strategic enterprise partners who could bring fundamental changes or value to the ecosystem. While most of our business partners acquire VETs on the open market, ~2.3million VETs were acquired from this pool by our strategic enterprise partners who are looking at holding the VETs for their long term purposes.

Total VET supply on the VeChainThor mainnet

On April 30, we conducted a stock take of the total live ERC20 VET supply on Ethereum. By deducting the amount that was burned due to token refund (VETs sent directly to the dead address and the VEN token smart contract address), we determined that the total supply of ERC20 VET on the Ethereum as of April 30 is 867,126,344.

As we launch the VeChainThor blockchain mainnet at the end of June, a 1:100 token split will occur. Based on the total supply of live ERC20 VET as of April 30 2018, we conclude that the total supply of VET on the VeChainThor mainnet will be 86,712,634,466. All VeChain Tokens (VET) on the mainnet will be minted in the genesis block and distributed to token holders through the token swap process, which we will have detailed instructions on.

ETH expenditure details

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The above table shows the ETH expenditure by category and the USD value of the ETH expenditure at the rate when the transaction occurred based on the financial accounts. In general, the total USD amount of ETH expenditure stays stable comparing with the last period. A summary of the expenditure in each category is as below:

  • Technological Research and Development — During this period some of the R&D projects consisted of initiatives relating to the future scalability and performance upgrade of the VeChainThor mainnet, VeChainThor dApps, enhanced IoT sensors as well as the VeChainThor hardware wallet. Some of these subjects are in the scope of the VeResearch program which VeChain collaborates with universities and research centers. We have also been continuously growing the development team over the course of the year, and in this period alone we have hired 20 full time engineers.

Announced Partnerships (February — April)

  • iTaotaoke

Highlights from the community and marketing events (February — April)

  • Sunny’s meeting with Alexander De Croo, Deputy PM of Belgium (Feb 12)

Compliance & Legal — Compliance and legal expenditure decreased in this period as contracts of some of the service providers ended. New service providers were engaged and these cost will be reflected in the later period.

Ecosystem Development Investments — The expenditure of this area has significantly increased, as VeChain Foundation started growing its investment capability we have supported additional projects and ventures that will benefit the VeChain ecosystem. As the mainnet goes live, we expect to invest more resources in helping and incubating projects which fit the Foundation evaluation criteria and are using the VeChainThor Blockchain.

We hope you are also excited as we are for the upcoming VeChainThor Blockchain mainnet launch. This milestone will embark a new era of the VeChain Project beginning the official launch of the Foundation, early supporters, enterprise users, and our Authority Masternodes together in one thriving transparent, adaptable, and governed ecosystem. This event will also create a more dynamic economy to surround the ecosystem and enable the Foundation to maximize its use of the VET and proceeds to help build the ecosystem to benefit the community.

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The VeChain Foundation is a non - profit entity established in Singapore.

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