VeChain Financial Executive Report Vol. 12
Transparency, Fairness, Openness
With the purpose of fostering transparent communication on our accomplishments on creating tangible economic value by blockchain technology, we hereby present the 12th VeChain Foundation Financial Executive Report, covering the period from May 2020 through to July 2020.
As always, we sincerely welcome the community to hold us to the commitment of transparency, including but not limited to the rigorous monitoring and usage of our funds, and the development process of all aspects within the VeChain Foundation.
The report structure is as follows:
1. VET Supply Overview
2. VeChain Foundation Expenditure (use of proceeds)
3. Notes
i) Enterprise Investor Pool
ii) Co-Founders, Development Team
iii) The Operation, Technological Research, and Development
iv) Business Development
v) Compliance & Legal
vi) Ecosystem Development
1. VET Supply Overview
As of Jul 31, 2020, the circulating supply including soft-lockups (i.e. 64,850,448,123) slightly increased by 534,871,134 VET, or 0.6% compared to the last reporting period. Within the VET circulating supply, 21,192,853,627 VETs were in the soft-lockups, which makes 24.6% of the total supply. Hence, by the end of this reporting period, around 50.8% of the VET total supply is free for trading on the open market.
Note:
* The soft-lockup categories are as follows:
- Authority Masternode collateral — each Authority Masternode keeps at least 25 million VETs
- X Nodes staking — each X node keeps a minimum amount of VETs based on four different tiers
- Economic Nodes staking — each economic node keeps a minimum amount of VETs based on three different tiers
- Team Lockup — According to the whitepaper 5% of the total VET supply is allocated to co-founders and development team, as of Jul 31, 2020, over 3 billion VETs have been locked up by the team to show the commitment to VeChain’s long term success
- **The ecosystem reserve was acquired by the VeChain Foundation on the open markets. This reserve will be used to facilitate the long term growth of the VeChain ecosystem. VeChain Foundation is evaluating institution-level custody service, and the reserve will be deposited into the custody and disclosed when the custody service is available.
2. VeChain Foundation Expenditure (use of proceeds)
We summarized below the USD value of the expenditure in fiat or BTC/ETH for the reporting period. For the spending in BTC or ETH, the USD value was booked based on the rate when the transaction occurred. In many situations, our service providers and partners prefer to receive VET as direct payment or investment compared to using fiat or BTC/ETH. Therefore, the total expenditure for operation, technological, and business development comprises a combination of direct VET payment and use of proceeds (fiat, BTC/ETH) depending on the associated parties’ preference.
3. Notes
i) Enterprise Investor Pool
Given the large impact brought by COVID-19 and the uncertainty around its precise economic impact, no enterprise investor was accredited during this period.
ii) Co-Founders, Development Team
In this period, the Foundation has distributed 225 million VET as the 12th quarterly rewards to the team, which contains the paused proportion during the last quarter. As usual, the entire executive team continued to lock up 100% of their rewards, and some of the team members opted to lock up their allocated tokens to show the commitment. As of July 31, 2020, over 3 billion VETs have been locked up by the team.
iii) The Operation, Technological Research, and Development
During this period, there have been notable improvements announced to the public, highlighting our great efforts in R&D in exchange for huge technological achievements, which is illustrated as follows:
- After Entropy (v1.3.0), VeChainThor mainnet code has undergone two minor updates that contain performance updates, such as asynchronous commit event/transfer logs to speedup block processing, special treatment for locally submitted transactions, which will not be dropped in the case of congestion, etc.
- On June 18, the VeChain core developer team updated VeChain Thor Devkit in Python 3. Python 3 (Python 3.6+) library aims to enhance smooth development on VeChainThor.
- On July 6, the VeChain core developer team released the VeChain Thor Devkit in .NetCore written in C# to assist development on VeChainThor Blockchain.
- VeChain ToolChain™ released new industrial built-in templates for enterprise users to easily deploy traceability processes into their business.
iv) Business Development
During this quarter, VeChain explored more business growth in the healthcare sector and revealed the partnership with Bayer China to co-develop CSecure, a blockchain-powered Clinical Trial Traceability Platform for drugs. Together with I-Dante, VeChain has been further engaged in the fight against COVID-19 by developing a blockchain-enabled medical data management platform named The E-NewHealthLife and a blockchain-enabled archival solution for COVID-19 RT-PCR and antibodies tests records named C-HCert.
There are also notable developments in the food sector. VeChain became the sole public blockchain protocol in the APAC Provenance Council and teamed up with PwC and Sam’s Club in China to launch the Sam’s Club Blockchain Traceability Platform. In terms of industrial efforts, VeChain and Cointelegraph Consulting have jointly produced a report on the transformation taking place in the food industry titled “Blockchain Meets IoT: Ensuring Food Safety In The 2020s”.
Announced partnerships and collaborations (May 2020 — July 2020)
- APAC Provenance Council (May 6)
Highlights from the business development and marketing events (May 2020 — July 2020)
- Dr. Peter Zhou, Partner and Chief Scientist at VeChain, joined the course “Blockchain Business Application” in CEIBS MBA programme, which is the Top MBA programme in China, to deliver cutting-edge industry insights of blockchain technology to all participants. (May 11)
- Jerome Grilleres, General Manager at VeChain, attended the online event Blockchain Day organized by ESGI, joining the session of discussion around blockchain in actual business scenarios, including blockchain deployment in the fashion, food, and energy sectors. (May 26)
- Kevin Feng, COO at VeChain, attended the BlockDown 2020 in the session themed “The Post-COVID 19 Crypto Space in Asia” to discuss the potential backlash and economic consequences of the COVID-19 pandemic in China. He shared insights on Chinese crypto projects and the investment trend. (June 18)
- Sunny Lu, co-founder, and CEO at VeChain attended Blockchain and Beyond: Modern Tools for Supply Chains, an event hosted by AmCham’s Supply Chain Committee. He analyzed the challenges of traditional supply chain management and presented the successful deployment of VeChain ToolChain™ in supply chain management. (June 23)
- Dimitris Neocleous, Ecosystem Manager at VeChain Europe, attended Blockchain in Healthcare: Bridging Trust in response to COVID-19. He shared experience in developing the blockchain-enabled solution The E-NewHealthLife, and the archival solution E-HCert App, which has been downloaded by thousands of Cyprus citizens. (June 23)
- Sunny Lu, co-founder, and CEO at VeChain attended China-Singapore Dialogue to join leading practitioners and share insights on blockchain deployment in various industries, which fostered opportunities to advance blockchain applications. (July 4)
- During the World Artificial Intelligence Conference (WAIC) organized by the Shanghai Municipal People’s Government, VeChain attended the blockchain forum co-hosted by the Shanghai Municipal Commission Of Economy And Informatization, Shanghai Finance Information Association, and several other large enterprises and organizations. (July 9–10)
- VeChain was invited to the business session of “Power Enterprises To Resume Business” held by the China Foundation For Youth Entrepreneurship And Employment to share insights on the application of blockchain technology in the field of food safety and sustainability products. (July 14)
- Sunny Lu, co-founder, and CEO at VeChain was invited by the CEO of Binance US, Catherine Coley in a special VeMA session on 15 July. He illustrated how to transform technology value to business value by the deployment of VeChain ToolChain™. (July 15)
- Sunny Lu, co-founder, and CEO at VeChain attended a live streaming interview with Boxmining. He gave an updated view of VeChain and its grand objectives. (July 20)
- VeChain and Avery Dennison Intelligent Labels jointly attended the 14th International Internet of Things Exhibition held in Shenzhen and showcased various advanced “Blockchain + IoT” solutions in front of enterprise attendees around the globe. (July 29–31)
v) Compliance & Legal
VeChain hires professional service providers in cybersecurity and legal to ensure products and solutions we offer are secure and compliant with regulations, which we believe is the prerequisite of mass adoption by global enterprises.
vi) Ecosystem Development
With the spirit to celebrate the 2nd Year Anniversary of VeChainThor Mainnet, the VeChain Foundation officially launched the VeChain Community Video Contest 2020 and VeChain Community Design Contest to show appreciation to the support and talent of the community members. The top winners have been rewarded handsomely with prizes.
In order to provide better support for community developers and improve the quality of contributions incorporated participation, the Foundation team has adhered to the Foundation Grant Program and bounty program, which was being implemented with increasing closer communication with our community. Besides incentive programs, we are also working with consultants to approach for more resources to create diversity in ecosystem productivity. The foundation team continues to evaluate both enterprise and community projects and keeps productive discussions with them.
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