With the purpose of fostering transparent communication on our accomplishments and creating tangible economic value with blockchain technology, the VeChain Foundation hereby presents the seventeenth VeChain Foundation Financial Executive Report, covering the period from April 2022 through end June 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.
Tough Times Build Strong Foundations
The global economy has continued to face considerable headwinds this year, however, the VeChain Foundation has been fortunate enough to be in a leading position with regards to enterprise adoption in the public blockchain space. Our technology development, marketing efforts and regional growth in Europe have maintained a strong trajectory, continuously furthering the Foundation’s growth objectives.
Despite the less-than-favourable market conditions, the VeChain Foundation maintains a strong financial footing with ample financial assets in reserve to support the continued support, development and upgrading of VeChainThor for many years ahead.
Below, we explore developments and activities relating to Q2 of this year, as well as oversight of VeChain Foundation-related expenditures.
The balance sheet shows the total value of tokens held by the VeChain Foundation, denominated in US Dollar value.
Total in USD
At the end of Q2, total asset value was $535 million, down by 44% from Q1, primarily due to the overall depreciation of crypto assets during the period. With a reserve of over half a billion dollars however, the VeChain Foundation is more than adequately positioned to weather the storm.
Despite global economic challenges, the VeChain Foundation retains its sharp focus on building products and services with its real-world-ready technologies that solve legacy pain points, support business activities and drive the global economic growth and digital transformation along a sustainable footing. We are happy and confident with our current efforts and are excited to see them come to fruition.
P/L Sheet (Total Expenses）
The P/L sheet covers all spending categories and provides an income statement (P/L), a financial statement that summarises the revenues, cost and expenses incurred.
Note: ‘Paid in Token’ refers to an instance where a client was willing to accept payment in VET, a sign of confidence and faith in the value of VET as a utility token.
Total Value in USD
Paid in Token
PR & Marketing
Legal & Fin
Eco BD / Eco BD-SDG
As part of the shift in resources laid out in the 2021/2022 financial overview, the VeChain Foundation shifted spending towards SDG projects to help attract SDG-related projects on VeChainThor.
Senior members of the team travelled extensively to coordinate with global partners on new projects. As our motto is "go sustainable", we continuously put effort into green projects.
PR & Marketing
On the 9th of June, VeChain Foundation proudly announced a global marketing partnership with the UFC, opening many new doors for clients, exposure and a colossal global viewership of almost 1 billion globally.
VeChainThor has subsequently been exposed to a global audience of young entrepreneurs and business owners curious about how blockchain can tangibly benefit their businesses, ventures and projects.
The partnership with UFC is a long-term strategic marketing event with any more developments planned. We will be coordinating with the UFC to provide the best experience for the VeChain community.
Legal & Fin
This part of our balance sheet has increased primarily due to increased legal consulting fees in San Marino relating to the finalisation of the Foundation’s new European Headquarters and adjustment of the organisational structure. We’re shaping the foundation to be an efficient yet highly compliant entity based on the European mainland, with the many benefits that brings.
Compliance and regulation in the blockchain space is still immature, however, VeChain is fortunate to be closely involved in discussions about the crypto compliance structure in San Marino.
The strengthening trend of the US Dollar has provided benefits with regards to servicing legal costs. With assets denominated in US Dollars, the Foundation’s purchasing power has increased versus the Euro, lowering the relative cost for the VeChain Foundation.
VeCarbon, a company that uses VeChain Foundation technologies launched the VeCarbon SAAS platform in Q2 - the service was highly praised by clients.
PoA 2.0: Finality with one bit
The VeChain Foundation continued to make positive strides with what promises to be a revolutionary upgrade to the VeChainThor consensus mechanism. The team has launched the public POA2.0 testnet, an upgrade that adds finality to the VeChainThor public blockchain.
New builders are joining the VeChain ecosystem using VeChain Foundation technologies, developing various new leads and use cases during the quarter. Of those that went public, we saw:
A premium footwear brand that combines fashion and professionalism and is committed to providing formal but comfortable shoes for office workers. By using the VeChainThor blockchain, each pair of shoes is registered with a unique ID. Manufacturing information is uploaded and registered on blockchain, becoming transparent and tamper-proof. Customers can easily access the information on material, production process, quality inspection process, even the design concept of each pair of shoes.
A premium Ginseng Snack Producer Using VeChain Blockchain Technology to trace their newly launched product, Chocolate-Covered Raw Cut Ginseng. The raw material, a rare ginseng kind from Changhai Mountain, China, cultivated by ginseng growing experts for more than 40 years, traced with blockchain technology to achieve transparency. Customers could know the whole production story behind, and have more insights to the brand.
By the end of June, VeChain Foundation signed a strategic alliance with Supply@ME (SYME); the fintech company behind the unique ‘Inventory Monetisation©’ platform. The outcome will be a first-of-its-kind ‘Web3’ Inventory Monetisation System that utilises blockchain, stablecoin and NFT technology to help creditworthy businesses raise value from their inventories and provide companies with entirely new kinds of economic services.
Of course, VeChain Tech continues to engage with enterprise and business partners on a variety of innovative, disruptive applications. Details of which will be revealed in due course.