The Zel Foundation
ZelCash is a fair-mined, community-based POW coin striving towards building an entire ecosystem of blockchain products including a robust user platform, high-availability computational network, and dapp/SC development platform. Currently the project does not utilize any institutional investment funding, and the Zel Foundation fund is established to pursue technology advancement for ZelCash led by the community and other 3rd party developers.
How the Zel Foundation operates
ZelCash began life with a development fund of ~13.2 million ZelCash, to be strictly used for development of the project. In August 2018, the fund was allocated to the Foundation wing (~7.9 million), and now lives in two separate addresses, the Locked account and the Operational account. Each year, 10% of the original allotment is moved from the Locked account to the Operational account (790,000 ZelCash) to be used on furthering ZelCash development, which includes things like: grants for wallet/daemon updates, development of ZelNodes features and dapps related to ZelCash, marketing/PR, anything that benefits the ZelCash project and Community. Ultimately, there will be a board of Community members that control the day-to-day operations of the Foundation, separate from the Zel core team, and responsible to the Zel Community.
The Zel Foundation will transition to a fiscal year calendar with a period of July to June. The reasons behind this move are:
- “Crypto winter” has hit the whole space hard. The Zel Team and project development up to this point has been made possible with distributions from the Foundation to the individuals continually working on the project.
- Despite under-performing markets, ZelCash has met almost all of the roadmap milestones, some ahead, some behind schedule, but development overall has been very strong for the whole project.
- The value of the Zel Foundation fund holdings has required the team to use more ZelCash than planned to get to this point in the project. To continue the rapid development of the project, more ZelCash is needed to distribute to team members, outside developers, and payments for required services (especially for a concerted marketing push this year).
- Funds will be used directly to pay for further development of ZelNodes including more advanced benchmarking, marketing/PR/tutorial videos and graphics, any future payments necessary for listing fees, legal requirements, and the necessary funds to pay for development of the main roadmap items such as ZelEx and ZelDev.
In Summary: The Zel Foundation will move Year 2 allotment of ZelCash from the Locked account to the Operational account in the coming weeks, which will span the period of July 2019 to June 2020, to fuel the rapid development needed to advance the project towards its goals.
More detailed information will be discussed during the upcoming live meeting — March 16th or 17th
Below is an itemized list of Operational account spending to date (12Mar2019) for Q4 2018 to Q1 2019:
- OTC/Exchange sales to BTC to pay for ZelCash developments (ZelNodes, marketing, etc.) — 337,125 ZelCash
- Team distribution to core, marketing/PR, ZelNode dashboard, ZelNode scripting, and community mod members — 100,000 ZelCash
- Advisor payments including marketing, Legal, and ZELmate/ZECmate development — 50,000 ZelCash
- Community Pool set up and maintenance by Pickaxe.pro — 10,375 ZelCash
- One-time legal fee to establish documentation for working relationships between ZelCash/ZelCore and 3rd party partners/affiliates — 150,000 ZelCash
- Infrastructure payments required for ZelNodes testnet (VPS/server and daemon testing) — 20,000 ZelCash
- Grand Total: ~667,500 ZelCash
The Operational account started the year with some spillover from 2018, so Q1 2019 started with ~ 805,000 ZelCash. As of today (12Mar2019), there is 137,293 ZelCash in the Operational account.
Frankly, ~137,000 ZelCash will not fund the rest of the year of required development to keep up the pace that the Zel Community has seen previously. To combat crypto winter and continue ZelCash development, Year 2 allotment of 790,000 ZelCash shall be unlocked to the Operational account soon, and will be utilized until June 2020 to fund the requisite projects to keep on schedule with the roadmap milestones.
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Written by Zel Technologies, GmbH — 12 March 2019 — Rev. 1