Announcing the EOSeoul Financial Information

Hello! We’re EOSeoul, an EOS Block Producer Candidate based in Korea.

It has been about three months since the EOS main net launched, and the EOS ecosystem is growing into one of the most powerful chains. But EOS community is still in need of more participation and consensus. And today, we’re going to share the EOSeoul financial information we promised to create a more transparent EOS ecosystem.

EOSeoul submitted our statement of principles for eosgo, and there is the pledge like below.

Transparency is key
Block producers are responsible for maintaining and providing services to the ecosystem but they also receive certain rights that they can exercise. We believe these rights belong to every member of the community and thus we will be transparent in every way possible so that our activities can be monitored and assessed objectively.
  • Clear display of real-time computational resources and transaction history
  • Transparently display fees related to node maintenance
  • Transparent planning of the inflation reward

Many EOS holders wondered that how and where EOSeoul has spent BP rewards. In the statement above, we would like to share our financial information with the EOS community. This report is for the first half of this year and is from January to the end of June. The third quarter report will be publicly available.

During the first half of 2018, we earned about 80 million Won as BP Rewards but our expenditure was about 290 million Won and recorded the loss of approximately 210 million Won. The deficit is bigger than we expected. Nevertheless, we can contribute a lot to EOS ecosystem with what we learned so far. There are a lot of problems to be resolved to bring the ecosystem into the mainstream but even more so, we, EOSeoul, decided to continue on our journey to contribute as EOS Block Producer. Please keep stay tuned for our future activities and supporting us by participating.

Transparency and Fairness

We already requested an audit from Samil Accounting (KPMG) to review our finance. NEOPLY will be publishing the 2018 audited annual reports as at 31 March 2019, which provides a comprehensive overview on DART, Repository of Korea’s Corporate Filings. To learn more about the report, please click the link. auditing report 2017 of NEOPLY(NEOWIZ INVESTMENT).

Income

The EOS price uses the daily closing average of the total four exchanges: Upbit, Bithumb, Binance, and OKEx. For example, about 900 EOS received on June 19 as a refund were calculated at a price of more than 11,000 Won and 354 received on June 29 at a price of 8,000 Won. This method is proposed by our auditor, Samil Accounting. The valuation of assets may be made at the end of the current term, but the income is assessed at the time of occurrence.

According to the EOS Authority’s Statistics page, On September 8, EOSeoul has the support of nearly 38 million votes from 7,596 holders. Based on the number of support voters, we are ranked in the top 17 with the lowest average number of votes (5,014) and the lowest average large votes (2.5 million votes) among the top 25 candidates. We are proud of gaining increasing support from the relatively small whales as well as many small EOS holders. We are getting a lot more support than we deserve and that keeps us to work harder.

Expenditure

About 70 percent of the BP rewards goes to pay salaries and about 20 percent of SG&A. The RAM purchase was about up 8% and 3% was used for servers. 10 members were in full-time and nine additional members were in part-time.
In the first half of the year, a lot of members from NEOWIZ Korea, Japan, and China involved during the election campaign period. It will be expected to be reduced but it won’t significantly change from now.
It was a new experience that we were introduced to, and it was difficult to predict exactly what would happen and how much manpower would be needed. And we ruled out any non-EOSeoul related projects. Part-time pay was also included during the month. However, it was calculated by applying the ratio of the hours spent to the hours worked. While the labor costs were seen to be gradually more efficient, we are putting more weight on “invest in the future” rather than on the effective cost management.
Since it was only a short time since the main net went live, the proportion of the server operating cost is relatively low. We are preparing to improve our infrastructure to meet the latest version of the EOSIO with the combination of the cloud and bare metal server setting which will drive the cost up significantly.

Why did EOSeoul purchase RAM?

We bought about 40MB of RAM after the main net went live and have not sold them yet. As you may know, NEOWIZ is a game developer and we expect that a significant amount of RAM is required to provide a variety of dApps, including games. However, it was difficult to predict how much RAM would be required. We will plan to dispose or purchase more when the uncertainty has been clarified.

Is BP Rewards Appropriate?

It is difficult to assess the adequacy of the rewards for BP candidates as they operate independently in terms of allocation of their resources or income spending to name a few. By comparing the financial information of each candidate, we think it will provide an opportunity to propose appropriate rewards. We expect that there will be long discussions to reach an agreement to find the suitable rewards. We encourage many BP candidates to participate in sharing financial information for a healthy EOS community. We want to create a transparent ecosystem together.

Concluding remark

Looking back over the past three months, we gained so much which cannot be expressed on the balance sheet, and it has so much rewarding. We are just great and thankful to be a part of the EOS ecosystem and would like to express our deep gratitude to all participants as well as our supporters in the ecosystem. Although we are in a standby BP at the moment, we will do our best to ensure that the votes and support of our supporters are not lost in vain.
Please keep an eye on EOSeoul and cheer us up.

Thank you

Team EOSeoul