I (@leoniker) am posting this on behalf of the NEM Community Fund Committee.
The following letter is being sent to all community funded projects. They will also receive a secondary letter with more confidential details specific to their project.
The NEM Community Fund DAO (NCF) was established from unclaimed stakes, with purpose of expanding the NEM ecosystem, and benefiting NEM adopters / stakeholders.
From a total of 300 million XEM, 30 million XEM has been allocated across a total of 12 projects. Five of these have completed their funding allocations, and are no longer receiving funds from the NCF.
The majority of remaining projects are now more than a year old and at varying stages of progress.
However; due to low crypto prices, and the application of the NCF algorithm, most projects have already exceeded, or are close to exceeding the originally requested XEM amounts.
At today’s price of $0.05 USD, the requested fiat values of NCF projects equates to over 85 million XEM. With market price trends, these volumes are susceptible to rapid inflation as ever increasing volumes of XEM are issued to offset the low fiat value.
This has been a good prompt to pause and consider if, and how, NCF best serves the remaining projects.
After careful assessment of the facts, we have concluded with the following:
Instead of draining the limited XEM reserves, we aim to conclude NCF processes at a cost of no greater than 5 million XEM. This 5 million XEM will be issued in a manner as effectively as possible to assist current projects in transitioning from NCF to external funding sources.
NEM Ventures is now operational with better processes and support than NCF can provide, and thus a preferable vehicle for NEM project support.
The existing NCF committee is now reviewing the remaining projects to ensure they are viable businesses aligned with the NEM vision.
The NCF Committee issues the following recommendations:
- Any remaining projects that have not proven they are a solid NEM fit, or where there are serious concerns about their viability to make it to market, will not receive any further NCF funding.
- Any project that has progressed to a point where it is now viable and ready for external investment will be asked to cease, or heavily reduce, any further NCF funding, particularly if what they have already received is above the original XEM budget.
- We will work with remaining projects to establish what further funding is genuinely required over the next 3 months as we assist them in transition to other funding sources.
We intend to wrap up the NCF processes and abolish committee by June 30th, 2019.
Originally published at https://blog.nem.io on March 25, 2019.