VeChain Foundation believes strongly in compliance and self-regulation. The second quarterly VeChain Foundation Financial Executive Report is made under these principles. We want to set a standard within the industry to drive home the ideology that blockchain cryptocurrency projects can embody ‘Transparency, Fairness, Openness’, this is our commitment to the community and ecosystem at large. This financial report covers the dates from November 2017 through January 2018. We sincerely welcome the community to uphold us to this commitment and monitor the funds usage and development process of all aspects within the VeChain Foundation.
VET Supply Overview
By the end of January 2018, the ratio of the circulating VET supply is 59%, which is about 6.4% larger than that was reported in the last quarterly financial report.
Note: The total supply of VET is 867,162,634.
- During the last quarter, we have received overwhelming interest for partnerships and collaboration from enterprises across various industries. A lot of them share our vision for the future of blockchain adoption. We allow our strategic enterprise partners, who would like to be an early adopter and contribute to the VeChain Thor blockchain platform, to invest into the dedicated Enterprise Investor Pool. 33,382,500 VETs have been acquired by our strategic enterprise partners during the financial period. We believe this will create a win-win situation as the VeChainThor Ecosystem will grow with more enterprise users committing to conduct their business and financial activities on the platform and helping the platform with their extensive resources and network. The enterprises will hold on to the VET tokens to generate the necessary VeThor Tokens needed to power transactions and smart contracts.
- The Foundation paid out the quarterly VET rewards to the team members. Of the ~9.5million tokens distributed from the Foundation to the team members. We are pleased to announce that all our executive team signed off on voluntarily locking up 100% of their rewards for two years, starting from the moment of distribution!
- A portion of the VET allocated for operation, technological development and business development were used to fund the development of the VeChainThor blockchain, market promotion, community outreach as well as facilitating the growth of future VeChainThor ecosystems. Please note that VET spending was based on the price in fiat currency when the transaction occurred. Please refer to the below section for more details.
- In terms of VET distribution, it becomes more dispersive. In order to enhance the security of tokens, and account for the unique and special attributes of cryptocurrency, the Foundation designed the world’s first Cryptocurrency Disaster Recovery Plan (CDRP). CDRP is aimed to build best practices, reducing the risk of digital wallets and making it easier to manage cryptocurrency within financial institutions or enterprises. Meanwhile, the practice complies with the needs of large enterprise users and meets all known regulatory requirements.
ETH expenditure details
Our expenses of ETH and VET were mainly used within technological development, business development, compliance & legal and ecosystem development investments. The expenditure is converted to USD according to the conversion rate on the day the conversion occurred.
Part 1 Technological Research and Development
The three-month expenses of technological research and development during this period is largely labor cost and R&D cost relating to the VeChainThor Mainnet and IoT hardware. We have more developers with various expertise, including:
• Underlying technology development
• Business implementation front-end development
• Business implementation back-end development
• IoT (Internet of Things) technology development
• Equipment purchases
• IoT hardware research
VeChain is looking to add more than 100 additional full-time developers by the end of 2018. We are seeking all means to be able to hire premiere developers suitable for the clientele and needs of VeChain. We are working with agencies and global experts (headhunters and executive search firms) to prepare our institutional processes and communication to support the rapid growth internally to best match the adoption currently shown by VeChainThor. We are willing to hire developers from the community as well, given the proper CV. These developers will be working nonstop to prepare this technology for widespread adoption and catering to clients with rigorous and extensive business processes that only a dedicated team can support.
If you are interested in potentially working for VeChain please send your resume to email@example.com and a representative will review your credentials.
In addition, VeChain announced VeResearch to develop a global innovation and research grant program targeting research professionals to integrate VeChainThor into emerging technologies.
Part 2 Business Development
During the reported financial reporting period, we saw enormous growth in business collaboration, partnership and community and market awareness.
- From Nov. 2017 to Jan. 2018, VeChain has established partnerships with Mlily (HealthCare Co.), BitOcean, Sanxinbook, Fanghuwang, NRCC, Gui’an New Area & many undisclosed entities under NDA;
- Meanwhile, VeChain seeks worldwide cooperation and involvement with industry conferences and academic activities such as Blockshow, Silicon Valley Live Blockchain Lecture, Blockchain Connect and Trusted IoT meetings as showcased in Q4;
- Significant efforts were spent on the market promotion and community outreach. As a result, our community grew exponentially from Nov 2017 to Jan 2018 — our telegram group has more than 18,000 members, reddit with more than 40,000 subscriptions and twitter has more than 70,000 followers.
- In January, DNV GL & VeChain officially announce a global partnership for digital transformation in an event hosted in London, which embarked a new era of development for VeChain.
- VeChain has expanded its business to various industries, such as a European automobile industry giant (BMW), food safety projects, world class luxury brands, medical supply industry leaders and other exciting involvements.
- VeChain held community activities such as the first community video contest and a slogan contest for our foundation (IP).
- More and more participants joined in VeChain Ecosystem, so our business development will be more and more abundant.
- The Foundation is creating methods to engage the community seamlessly to perform technical development and business development.
Part 3 Compliance & Legal
VeChain Foundation set up the steering committee in November and successfully partnered with the world’s leading compliance and auditing firms to advise and collaborate alongside us. These firms help us implement and adhere to global regulatory policies as well as proactively create future cryptocurrency management policies.
Of such policies, VeChain has established the following advancements:
- Enterprise wide cybersecurity and privacy policies that align with regulatory requirements across regions
- Formalize the governance model of VeChainThor platform
- Conduct the first CDRP drill exercise
- Established policies & operating procedures for the management and accounting of cryptocurrencies
VeChain has been working with leading compliance and business advisors to build several critical infrastructure services including VeVID on the VeChainThor for better comply with regulatory requirements and enterprise needs.
This expenditure allowed us to enable advisors to be fully immersed in the growth of VeChainThor and the VeChain Foundation.
Part 4 Ecosystem Development Investments
The reinvestment of VeChain Foundation focuses on two parts: project-oriented and enterprise-oriented. VeChain Foundation has supported other outstanding blockchain projects.
Furthermore, with a global ecosystem that empowers everyone, VeChain will always work to change the world for the better. Part of that cause is creating new ways for businesses to collaborate and part of that is enabling people in underdeveloped nations and regions be given a chance to thrive.
With VeChain receiving more global recognition in the business and political conversation alongside the maturity of the ecosystem, VET tokens will be utilize and perceived in ways beyond our imaginations today. VeChain Foundation urges the community to learn more about us, get involved with us in deeper ways, for we are not trying to be a blockchain project that only solves one vertical problem. Our goal is for VeChain is an ecosystem to empower millions of people to take their destiny into their own hands. Being a part of this mutual ecosystem will represent a new way of life in the near future.