VeChain Financial Executive Report Vol. 8

2019-09-27 11:38
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We are excited to present the eighth VeChain Foundation Financial Executive Report. This financial report covers the period from May 2019 through to July 2019.


During this period, VeChain partnered with San Marino Innovation and DNV GL to adopt the VeChainThor Blockchain in San Marino Republic to strive to become the first carbon neutral country. On July 16, 2019, the VeChainThor blockchain recorded the day with the highest number transaction clauses since the mainnet launch — over 1.1 million transaction clauses with over 35 million VTHOs burned. We are making further progress on solving real-world economic problems and targeting a broader user base with the VeChain blockchain technology.


As always, we sincerely welcome the community to hold us to the commitment of transparency, the rigorous monitoring and usage of 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


At the end of July, the VET circulating supply was 63,030,429,892 which accounts for roughly 72.7% of the total supply, compared with 71% of last quarter end. Within the VET circulating supply, 20,930,516,127 VETs were in the soft-lockups, which makes roughly 24.1% of the total supply. This means around 48.6% of the VET total supply is free to trade 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 VET based on four different tiers
  • Economic Nodes staking — each economic node keeps a minimum amount of VET 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, and this pool is released quarterly over a two year period. However, in this reporting period the executive team as well as some of the team members voluntarily locked 356 million VETs, which is 64% of the total amount allocated to the team. As of July 31, 2019, over 2.7 billion VETs have been locked up by the team to show the commitment to VeChain’s long term success

** The ecosystem reserve was acquired through the VeChain Foundation Buyback initiative as of the end of July. This reserve will be used to facilitate the long term growth of the VeChain ecosystem.


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.


Comparing with last period during which the VeChain Summit was held, the total expenditure of this period reduced significantly.



3. Notes


i) Enterprise Investor Pool


During the reporting period, around 18 million VETs were purchased from the enterprise investor pool by our strategic institutional partners. As always, the partners invested in this pool are subject to lock-up and looking at holding the VETs for long term purposes. We continued conversations with a number of reputable institutional investors in the US, Europe and Middle East, who showed interested in investing in VET and could potentially bring significant resources to VeChain.


ii) Co-Founders, Development Team


In this period, the Foundation distributed 555 million VET as eighth quarterly rewards to the team. During this reporting period, 3 full-time employees joined us in our development, project management and product teams. Same as previous periods, the executive team will continue locking up 100% of their rewards gained in this period. In addition, some of the team members opted to lock up their allocated tokens to show the commitment to VeChain’s long term success. In total, out of the portion allocated to the team in this quarter, about 356 million VETs, around 64%, were locked up voluntarily after being released from the Foundation reserve.


iii) The Operation, Technological Research and Development


During this period, VeChainThor Mainnet v1.1.2 upgrade has been successfully activated at block #3337300, and VIP 191 — designated gas payer became available. With this upgrade, significant security testing and bug bounties were conducted on the VeChainThor Mainnet source code.


In this period, Peter Zhou, VeChain Chief Scientist teamed up with with Prof. V.S. Subrahmanian and his team at the Department of Computer Science, Dartmouth College, and the Paper “C2P2: A Collective Cryptocurrency Up/Down Price Prediction Engine” was accepted by IEEE Blockchain-2019 Conference.


Furthermore, several products were announced to the public, highlighting our achievements and development.


  • We launched the HSM Based Key Escrow Escrow Turnkey Solution to resolve one of the greatest challenges for the mass adoption of blockchain, which is the private key management. This hardware based turnkey solution is available for customization and independent deployment. Once authorized by VeChain, enterprises and developers can build their own key escrow services based on the solution to better serve their customers

  • The VeChainThor Wallet v1.4.1 and v1.4.2 were released during this period. Besides keeping optimizing user experience, we have added the token value that users can see the market value in real time

  • We open-sourced the VeChainThor wallet SDK, which provides a selection of functional interfaces necessary to leverage VeChainThor wallet features. This SDK empowers wallet developers to create their own wallet easily and enables application developers to test their application compatibility in VeChainThor wallet

  • We also revealed the new official VeChain website. The new website comes with a clear layout of the solutions, products and services and the key features of the VeChainThor blockchain and ecosystem


iv) Business Development


During the reporting period, the VeChain team has managed to build a few renowned partnerships which will lead to more enterprise blockchain applications on the mainnet. In collaboration with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was launched at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar.


Announced partnerships and collaborations (May, 2019 — July, 2019 )

  • Walmart China (June 25)
  • Jur (July 18)
  • San Marino Innovation (July 22)
  • Latitude 28° (July 24)


Highlights from the community and marketing events (May, 2019 — July, 2019)

  • Sunny Lu attended the Seeds&Chips Global Food Innovation Summit, discussed with Conte about blockchain topic, and shared opinion on “the Ecosystem in the New Black, how blockchain is changing the rules of the game” (May 7)
  • VeChain project manager Tang Min “Table of Norway” hosted by Norway in a Box, and introduced the VeChain Toolchain (May 8)
  • Sunny Lu delivered a speech of “The next decade of blockchain, driven by business value and application” at SALT (May 9)
  • Suny Lu, Kevin Feng, and Jerome Grilleres attended VeChain Meetup at Paris (May 15)
  • VeChain and DNV GL attended Viva Tech and Showcased My Story™ and VeChain ToolChain (May 16)
  • Chin Qian, VeChain Chief Business Officer, attended the “BIOFACH CHINA Shanghai International Organic Exhibition and Organic Fresh Food Base Resource Library Platform Conference” and showcased My Story™ and VeChain ToolChain (May 16)
  • VeChain attended LONGHASH CRYPTOCON VOL.2 at Berlin, and introduced VeChain blockchain solutions and use cases (May 17)
  • VeChain Attended the China International Big Data Industry Expo 2019 (May 29)
  • Sunny Lu attended “Hello Future Summit 2019”, a major event in the fashion industry held by TechNode and Explorium and shared successful use cases that VeChain has implemented in the industry (May 30)
  • General Manager of SE Asia & Australasia, Sarah Nabaa attended LongHash DLT Compass, and delivered a speech of “Accelerating the Internet of Value through Enterprise Adoption” (June 6)
  • Sunny Lu attended CogX, an artificial intelligence and innovation technology conference held in London. Sunny shared opinions on the topic of “They Promised Us Flying Cars” (June 11)
  • General Manager of SE Asia & Australasia, Sarah Nabaa introduced VeChain enterprise-level blockchain solutions at Digital Business Innovation Centre, DBIC Singapore. (June 12)
  • General Manager of SE Asia & Australasia, Sarah Nabaa attended the OceanEx Meetup at Vietnam, and introduced VeChain ecosystem, and support for blockchain developers (June 15)
  • Sunny attended the Copenhagen FinTech Week and delivered a speech of “Blockchain Business Bridge — Practical Application of Blockchain in China” (June 18)
  • General Manager of SE Asia & Australasia, Sarah Nabaa attended “Malaysia Blockchain Week” and introduced VeChain enterprise-level blockchain solutions (June 20)
  • VeChain hosted the 1st ToolChain Day at Shanghai (June 23)
  • VeChain attended the WalMart China’s blockchain traceability platform launching ceremony as the technology partner (June 25)
  • VeChain US Country Manager Jason Rockwood attended blockchain seminar hosted by the Dartmouth Institute of Technology, and the Society of ISTS at Dartmouth College (June 27)
  • VeChain successfully held an 8 hour long AMA Marathon on June 30th to celebrate the one year anniversary of VeChainThor mainnet launch (June 30)
  • VeChain Chief Scientist, Peter Zhou attended the innovation lab seminar hosted by the Shanghai University of Science and Technology and delivered a speech of “Frontiers in FinTech” (July 11)
  • VeChain attended the “Global Demo Tour” hosted by TRIBE ACCELERATOR and explorium as technical support (July 11)
  • VeChain Chief Technology Officer,Gu Jianliang attended the “Fifth China (International) IoT Expo 2019” and shared opinion on FRID by delivering a speech of “Scenarios drive applications, link to infinite possibilities” (July 12)
  • A Memorandum of Understanding has been signed between the Republic of San Marino Secretary of State for Industry, Trade, Business, Cooperation and Telecommunications, Republic of San Marino Innovation Institute S.p.A, DNV GL Business Assurance Group AS and VeChain Foundation to strive San Marino the first carbon-neutral county (July 25)
  • VeChain US country manager Jason Rockwood attended The 3rd annual APAC Blockchain Conference, and introduced VeChain ToolChain by delivering a speech of “Using public blockchain for public innovation” (July 23)
  • Kevin Feng attended the World Blockchain Summit in Singapore and delivered a speech of how the VeChain ecosystem is creating value to the business and solving real-world problems (July 25)
  • Head of Carbon Ecosystem project, Edison Zhang attended the “Green Packaging Low Carbon Ecology Industry Conference” jointly organized by VeChain Technology and Identify Truth, and introduced the Digital Carbon Ecosystem jointly developed by VeChain and DNV GL (July 26)
  • VeChain attended the 12th International Internet of Things Exhibition Shenzhen Station, and showcased the clothing raw material traceability solution and the old clothes recycling solution based on VeChain ToolChain (July 30)
  • VeChain Chief Technology Officer, Gu Jianliang attended Amazon Web Services (AWS) Global Beijing Summit, and showcased VeChain ToolChain and Various VeChainThor Blockchain-Powered Use Cases (July 31)


v) Compliance & Legal


VeChain engaged 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 aim of “Creating Valuable Transactions”, the VeChain Foundation, as a key enabler of the ecosystem, launched VeChain Accelerator ProgramVTHO subsidy programVeChainThor Supercharger program as well as other supports that are available to ecosystem builders. VeChain’s goal is to enable ecosystem builders including enterprises, startups and community members to create business value by solving real world economic problems with the VeChainThor blockchain. In addition, we were excited to have 8Hours FoundationJur and Hacken join the VeChain ecosystem.

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