With the purpose of fostering transparent communication on our accomplishments and creating tangible economic value with blockchain technology, the VeChain Foundation hereby presents the sixteenth VeChain Foundation Financial Executive Report, covering the period from January 2022 through end March 2022.
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 of the VeChain Foundation, the entity responsible for the development of the VeChainThor public blockchain.
New Year, New Horizons
In the first quarter of 2022, one of our major focuses has been our European expansion. The Head of Sustainable Development Goals (SDG), Anotonio Senatore, has been spearheading growth efforts through our new technology centre in Ireland with a mandate of hiring 100 new technical staff to greatly enhance our capabilities on the European mainland.
In addition, the development of our new Foundation Headquarters in San Marino continues in earnest. By legally positioning ourselves in Europe, VeChain is able to better embrace the wave of business opportunities opening up while ensuring full legal compliance and alignment.
With our technologies matured and proven in live commercial environments, we’re very excited to begin a new phase of expansion and adoption in one of the fastest growing adoption regions of the planet.
Balance Sheet of 2022 Q1
The VeChain Foundation continues to operate from an extremely healthy financial position, with assorted funds including those raised during ICO, VET holdings and stablecoins. From this footing, the Foundation can ensure the long term development of the VeChainThor blockchain.
Total in USD
At the start of the quarter, the opening balance was $1,373,691,155, however, the balance has since decreased to $1,215,793,249 due to crypto market fluctuations and other VeChain Foundation outgoings.
P/L Sheet（Including all spending）
The P/L sheet reflects all spending categories to ensure the income statement (P/L), a financial statement that summarises the revenues, cost and expenses incurred, is accurate, precise and complete.
Since our update at the start of the year, categories now include:
- Ecosystem development: Including ecosystem partners cooperation like exchanges, custodians, wallet providers, brokers etc., community events, ecosystem projects cooperation and business case development;
- Ecosystem operation: Including the operation cost such as team costs, office rents, utilities, consulting fees, external services;
- Ecosystem investment: Including the grants, incubations, accelerations, and investments for VeChain ecosystem projects;
- Technical operation: Including technical team human cost, incentives, travel spending and the cost of attending events, external technical services like smart contract auditings, security auditings, penetration testings etc.;
- Technical infrastructure: Including cloud service fees and other infrastructure implementation fees.
- Legal & Finance: Including entity setup, compliance consulting, legal and financial service fees;
- PR & Marketing: Including marketing events, sponsorship and commercials, communication and media services;
- R&D: Including technical research & development, Scholar program sponsorship, IP related costs;
As per calculation, all the payments are settled by crypto assets and shown in fiat equivalent value in this table.
Total Value in USD
Paid in Token
PR & Marketing
Legal & Fin
Business Development in Q1
VeUSD - VeChain’s first stablecoin
On 14th March, we launched our first stablecoin VeUSD, developed by Stably, onboarded by CREAM and with stablecoins issued by Prime Trust, a Nevada-chartered trust company from the US. Each VeUSD is fully backed by physical reserves of fiat money, redeemable at a 1:1 ratio at any time.
We hosted a $50k community bonus mint event and a $500k X-node airdrop event to celebrate the launch. By the end of Q1, $5,249,789 worth of VeUSD had been minted on Stably.
The VeChain Hackathon
In March, we launched VeChain Hackathon with Devpost. Alongside our vast Enterprise efforts, we are also keen to help foster growth among community developers. Accordingly, we launched the Hackathon to spur the development of tools that will benefit future dApp and community builders.
With over 270 sign-ups, we’re very excited to see what the talented builders out there have to offer. We’re already aware of several very strong entrants and look forward to seeing even more!
VeChain x Draper University Fellowship program
In Q1, we started the fellowship program with Draper University, a four-week online certificate program for future founders to learn the fundamentals of entrepreneurship and blockchain by Silicon Valley legends and industry experts.
So far, we have seen many brilliant projects from both tracks: developers and entrepreneurs. The average program attendance rate so far is 90% with many positive feedbacks.
The fellowship participants can access the opportunity to pitch to VCs with their projects and get handpicked for the accelerator program in July.
Alchemy pay integration
VeChain is officially listed on Alchemy Pay in Q1, a mainstream-friendly fiat payment channel and crypto on-ramps. It enables VET to be accepted by two million+ merchants in over 70 countries worldwide.
· VeCarbon formed a partnership with Zhongyuan Cement, SW Cement and other enterprises to use VeCarbon’s carbon emission management system to manage the carbon emissions relating to each enterprise
· Formed a strategic partnership with Shanxi Energy Research Association to jointly develop local carbon neutrality business in Shanxi
· Led by the China Energy Research Society and cooperating with the Chinese Academy of Engineering, China Electric Power Research Institute, and Sinopec Group,VeCarbon helped draft the "Carbon Neutral Industry Cooperation Development Report"
· Develop emission reduction methodologies and digital systems to enhance and drive circular economics
· Formed a partnership with AWS to build the VeCarbon emission management SaaS system, based on the services of AWS China region.
Launched in 2015 as a private consortium network, the VeChain Foundation went on to develop the VeChainThor public blockchain, a fully programmable EVM compatible L1 smart contract platform that is adaptable to wide-ranging real-world needs. Supply chain, sustainability, carbon emissions, SDGs, De-Fi, NFTs and more, VeChainThor seamlessly handles it all.
A unique two-token model ensures low and stable transaction costs while an advanced Proof-Of-Authority consensus mechanism guarantees high throughput, scalability, and security with minimal energy consumption, culminating in zero downtime for the network after 3+ years of continuous operation.
VeChain Technology continues to pioneer real-world blockchain applications across the globe with offices in China, Singapore, Luxembourg, Japan, France, San Marino and the United States.
Strong independent development capabilities combined with the professional compliance guidance of strategic partners PwC and DNV GL has enabled VeChain to establish partnerships with leading enterprises including Walmart China, Bayer China, BMW Group, BYD Auto, PICC, H&M Group, Shanghai Gas, LVMH, D.I.G, ASI Group and more.