- VeChain is a supply chain management-enhancing blockchain initiative.
- The Foundation’s first-quarter earnings are also missing from the report.
It has been revealed that the VeChain Foundation spent just $4.1 million in the first quarter of 2022, according to its financial report for Q1 2022. VeChain is a supply chain management-enhancing blockchain initiative.
Treasury assets, which included stablecoins, Bitcoin (BTC), Ether (ETH), and VeChain (VET), began the year at $1.37 billion, but by quarter’s end, they had shrunk to $1.2 billion. According to the study, “due to crypto market fluctuations and other VeChain Foundation outgoings” accounted for most of the losses.
Minimized Expenses in Q1
Since December 31, 2021, when the project began its Q1 monitoring through March 31, the BTC, ETH, and VET prices have plummeted by 34%, 36%, and 54%, respectively. The Foundation spent the most money in the first quarter ($1.8 million) on ecosystem business growth out of $4.1 million. Partners, wallet providers, brokers, community events and cross-ecosystem project collaboration fall under this umbrella term.
Ecosystem operations cost $1.1 million, including salaries and benefits for the team, office space and utilities, consultancy fees and other third-party services. The paper states that a treasury has been set up, but it is not apparent if the Foundation would open it up to other investors.
The Foundation’s first-quarter earnings are also missing from the report. Transaction fees are collected on the VeChainThor blockchain and dispersed among the many players in the ecosystem. On the other hand, the financial report does not include information on the accrued fees. According to the financial report, VeChain’s carbon emissions data management system and VeCarbon’s relationship with key cement business participants were revealed.
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