VeChain Financial Executive Report Vol. 14

2021-04-12 18:56
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With the purpose of fostering transparent communication about our accomplishments on creating tangible economic value with blockchain technology, we hereby present the 14th VeChain Foundation Financial Executive Report, covering the period from November 2020 through to January 2021.

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 Jan 31, 2021, the circulating supply including soft-lockups (i.e. 65,241,752,869) slightly increased by 272,791,836, or 0.32% compared to the last reporting period. Within the VET circulating supply, 18,044,083,543 VETs were held in soft-lockups, totalling 20.99% of overall supply. Hence, by the end of this reporting period, around 54.89% of the VET total supply is free for trading on the open market.


* 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 total VET supply are allocated to co-founders and development teams.  For long-term confidence and better incentives for team members, the Foundation started to release the lock-up pool from November 2020.

**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 impact of COVID-19 and the related economic turmoil, no enterprise investor was accredited during this period. 

ii)Operation, Technological Research and Development 

During this period, there have been some notable improvements announced to the public, highlighting our great efforts in R&D which have resulted in some huge technological achievements, illustrated as follows: 

  • On November 5, the core dev team released Picasso library v2.0.2 to provide better color rendering and pattern for arbitrary inputs on VeChainThor Wallet.

  • On November 10, the core dev team released VeChainThor v1.3.7. The latest version improves js tracer, adds CREATE2 support, and clarifies the revert reasons. 

  • On December 18, the Foundation announced that the Royal Melbourne Institute of Technology (RMIT) Blockchain Innovation Hub has joined the VeResearch program to address issues such as governance and other technological hurdles facing the industry. Founded in 1887, RMIT is a global university of technology, design and enterprise and the largest dual-sector education provider in Australia. RMIT was ranked 10th globally in the 2020 Times Higher Education (THE) Impact Rankings. 

  • Led by China Electronics Standardization Institute, IEEE Standard for Data Format for Blockchain Systems was published on December 23, 2020. The standard establishes data format requirements for blockchain systems and addresses data structures, data types, and data elements. Dr. Peter Zhou, Chief scientist of VeChain, was one of the contributors of the standard committee.

  • On November 24, the core dev team released a Java SDK, which enables users to create wallets, assemble and debug transactions, verify signatures, ABI encoding, log decoding, and more.  

  • On January 15, VeChain formally introduced a new infrastructure-level module called Fee-Delegation as a Service (DaaS). DaaS allows projects to hide the complexity of paying transaction costs from their users entirely, significantly improving the user experience and making them more able to be mass adopted. It will make it possible to pay any VeChain Ecosystem token for transaction gas fees on VeChainThor, potentially creating genuine demand for the token and relevant DeFi services.

iii)Business Development

The Foundation sticks to our vision to deliver the predetermined value to our ecosystem business owners. This quarter saw the success of startup D2C e-commerce platform KnowSeafood integrating VeChain blockchain technology to their entire value chain.

The E-HCert App, co-developed by VeChain and I-Dante, has launched a latest iteration during this quarter; which offers an ecosystem of blockchain-enabled services. After demonstrating efficacy in the Mediterranean Hospital of Cyprus, another top-of-the-line private medical facility, Aretaeio Hospital, has joined the VeChain Ecosystem and integrated the E-HCert App throughout its lab testing services. 

Based on grounded practice and premium technology, VeChain receives the world's first 5-Star-Rated Blockchain Service Certificate issued by TÜV Saarland Certification. The certification acknowledges the readiness and maturity of VeChain’s blockchain technology, raising the profile and prestige of the network and certifying it as one of the preeminent front runners in the enterprise-level blockchain space.

Announced partnerships and collaborations (November, 2020 - January, 2021)

  • Blockchain for Trade & Connectivity Network 

  • Grant Thornton Cyprus (Authority Masternode)

Highlights from the business development and marketing events (May, 2020 - July, 2020)

  • VeChain attended the 2020 CSRTech Corporate Social Responsibility Conference held by Orange (one of the world’s leading telecommunications operators), Xiaomi (one of the largest Chinese multinational electronics companies), Alibaba Cloud Innovation Center and other leading enterprises and organizations, to share blockchain applications in sustainability. (November 3)

  • The HKMA Annual Conference 2020 intended to showcase some established and up-and-coming companies to share with the audience their unique stories on embracing the new normal. Sunny Lu, co-founder and CEO of VeChain, spoke at Transformational Leadership in the Age of New Normal. Other speakers included Ms Leonie Valentine, Managing Director of Sales & Operations of Google Hong Kong, Dr Harry Shum, Adjunct Professor of Tsinghua University (Former Executive Vice President of AI & Research Microsoft), and Dr Peter Zhou, President of Data Storage and Intelligent Vision Product Line, Vice President of Huawei Technologies Co., Ltd. (November 10)

  • Singapore FinTech Festival is the world’s largest FinTech event and a global platform for the FinTech community comprising FinTech players, technopreneurs, policy makers, financial industry leaders, investors including private equity players and venture capitalists, and academics. Peter Zhou, the Chief Scientist of VeChain attended the event and explored insights on the transformational force of blockchain technology in the near future. (November 10)

  • Sunny Lu, co-founder and CEO of VeChain, attended the Sports Tomorrow, a new two-week online event held by Barça Innovation Hub, which is the first of its kind for the audience to discover, learn and trigger the next new revolution. Sunny spoke at “Blockchain in Sports: Challenges & New opportunities” and gave insights into the future landscape of blockchain applications in this area. (November 11)

  • The 2020 edition of China Hi-Tech Fair has been successfully held at Shenzhen Convention & Exhibition Center. During the 5-day event, VeChain attended the 4th China Green Economy Summit 2020 and gave a speech on “Power The Digital Green Transformation By Blockchain Technology”. (November 14)

  • During the 2020 SCIP+ Green Chemistry and Chemical Engineering Innovation and Entrepreneurship Contest, Suez, a global leader in environment services, proposed designated topics to seek for outstanding teams with innovative thoughts. VeChain became the winner of Blockchain Improving the Traceability in Waste Management System. (November 14)

  • Top 10 Best Practices of Blockchain In Supply Chain China Federation of Logistics& Purchasing (CFLP), the only social organization of the logistics industry in China, held the 2nd Supply Chain & Blockchain Technology Conference in Shenzhen. Joined by enterprises such as Huawei, Meide, and Tencent, VeChain attended the event and was awarded Top 10 Best Practices of Blockchain In Supply Chain for Walmart China Blockchain Traceability Platform. (November 16-18)

iv)Compliance & Legal 

VeChain hires professional service providers in cybersecurity and legal to address a confluence of regulatory and business changes that are putting demands on compliance. The increasing collaboration of VeChain with government-backed alliances and projects further proves the security and compliance of VeChain solutions, which we believe is the prerequisite of mass adoption by global enterprises.


v)Ecosystem Development          

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 programmes, we are also working with consultants to approach for more resources to create diversity in ecosystem productivity. The team continues to evaluate projects and keeps productive discussions with several teams.