VeChain Financial Report — Q2&Q3 2024

Dear Community,

As always, we continue to hold ourselves to the vision of transparency we laid out following the launch of our public blockchain back in 2017. Since then, we have faithfully published quarterly reports detailing our expenses, outgoings and Treasury health, helping preserve the trust given to us by our millions of global stakeholders.

The latest edition of the financial report is a combined one — covering the second and third quarter of 2024. Following the launch of our new sustainability app ecosystem, VeBetter, and the DAO that governs it, community input, governance, and transparency have been more important values than ever. Your steadfast support are helping propel VeChain to even loftier heights, as we drive a new frontier for adoption through our sustainability app platform.

With governments increasingly focused on the regulatory aspects of digital assets, combined with increasingly positive market conditions, the outlook of the crypto markets is improving considerably. The approval of the Bitcoin ETF in Q1 2024 marked a notable shift in tone from the SEC, who subsequently approved an ETH spot ETF in May 2024. These events highlight an understanding and willingness to establish frameworks for these new asset classes.

For us at VeChain, these developments establish a clear trend, and present an incredible opportunity — the culmination of a vision we have held for many years — mass adoption is just a matter of time. As a leading Layer 1 blockchain, and one of the most enterprise-experienced and compliance-focused, VeChainThor, our protocol, stands as an exemplar, and a shining beacon for the potential of blockchain when applied in the real economy.

As we navigate the ever-evolving crypto market, it is vital we maintain fiscal responsibility while building out our team, protocol, and tools. The VeChain Foundation has proven itself more than adept at this task over the past 7 years, and, per this report, VeChain’s Treasury was valued at $304,963,122.84 in Q2 2024, and $287,927,244.01 by the end of Q3 2024.

As we continue our journey in to the evolving 2024/2025 market, we are confident in our prospects for growth, our financial trajectory, and our ability to secure a Treasury that will enable a long fiscal runway, allowing us to pursue any and all necessary ventures to see the fulfilment of our grand objective: Mass adoption.

Thank you for being an integral part of the VeChain community, and supporting us, while we support you.

Sincerely,

VeChain Foundation

Balance Sheet

The balance sheet shows the total value of tokens held by VeChain, denominated in US Dollar value.

Treasury balances at the end of Q2 and Q3 of 2024, respectively.

At the end of Q2 2024, the total treasury value of the VeChain Foundation, including stablecoins and holdings of BTC, ETH, and VET, stood at $304,963,122.84. By the end of Q3 2024, the total treasury value stood at $287,927,244.01.

Comparing Q2 with Q3, the fair price BTC increased 7.8%, ETH’s value decreased 21%, while VET’s value remained largely stable.

Expenses Sheet

The expenses sheet covers all spending categories and summarises the expenses incurred by the foundation through various activities, initiatives, developments and engagements.

Treasury outgoings for Q2, 2024. Treasury outgoings for Q3, 2024.

Eco BD: The $2,571,731.19 USD spending in Eco BD. This portion of the funds is primarily used to promote ecosystem development, early-stage planning, and consulting. We maintain competitiveness in sustainable development fields such as biodegradable materials, emission reduction, and recyclable collection. The increase in expenses is mainly due to the growing number and maturity of our technical tools, leading to more teams and individual developers applying for our grant program and receiving recognition and support from the VeChain Foundation.

This effort not only supports the ecological development of VeBetterDAO but also helps build a stronger community for VeChain itself and fosters a shared commitment to environmental protection. Additionally, we are actively expanding various channels, including wallets and compliant exchanges, to make blockchain more accessible to everyday users.

Legal & Finance: With a total spending of $1,174,513.63 USD in Q2 and Q3, Legal & Finance expenses cover legal services, contracts, and compliance. Additionally, financial management expenses, including accounting services and financial consulting, contribute to this category.

We have seen extraordinary strides in achieving regulatory clarity in this Q2. With MiCA set to be implemented by the end of 2024, VeChain is actively preparing by providing necessary documentation and validation tests.

Recently, we announced a partnership with the Crypto Carbon Ratings Institute (CCRI), a prominent European organization that brings transparency to the environmental impact of the crypto industry and the VeChainThor blockchain. This crucial development helps VeChain meet the upcoming MiCA regulations, particularly regarding sustainability indicators. This is an important milestone for us.

PR & Marketing: The $12,795,561.17 USD Q2 and Q3 spending in PR & Marketing is divided into expenses for event sponsorships and partially expense for VeBetterDAO supporting services. This includes costs related to organising events, such as venue, speakers, logistics, and promotional activities, as well as funds allocated for sponsorship fees. Compared to Q1, there has been a significant increase, driven primarily by sponsorships of UFC, Hive, and a hackathon held in San Francisco. During these events, we were fortunate to collaborate with talented and motivated individuals and teams who are helping us build the future through Web3. Their contributions are instrumental in our mission to make the world a better place.

Tech-ops: Tech-ops expenses of $7,232,483.75 USD in Q2 and Q3 cover a range of activities. This includes salaries for the tech team, payments to external consultants, software subscriptions, IT equipment purchases, travel expenses for the tech team, and costs associated with organising builder events and community operations. Our technical team worked diligently to deliver upgraded versions of development tools, including SDKs, VORJ, and VeWorld, while also supporting community projects such as MaaS and the marketplace.

Eco-ops: The Q2 and Q3 $2,571,731.19 USD spend for Eco-Ops is directed towards outsourcing development tools and relevant salaries for the team. This includes expenses related to outsourcing development tools, such as software development services, as well as salaries for the team working on Eco-Ops initiatives. The growth was primarily driven by our deepening partnership with BCG and other consulting services for ecosystem operations, including exchange support. Additionally, there was an increase in salaries and compensation.

Stable Foundations Power Long Term Prospects

As always, we are committed to using our resources to optimally guide our growth, and support our goals of mainstream adoption for our platform.

Once again, we thank our incredible community — we couldn’t do it without you.

About VeChain

Founded in 2015, VeChain built a world leading enterprise smart contract platform, VeChainThor, helping deliver blockchain adoption apps to hundreds of enterprise partners.

Building on this expertise, VeChain, in close partnership with Boston Consulting Group, launched the ‘Better’ ecosystem — comprised of sustainability apps that use tokenization and incentivization to reward users, businesses and other stakeholders for sustainable actions.

To learn more, including how you can build apps of your own, grants, documentation and more, visit vechain.org — or vebetter.com to explore.

VeChain Financial Report — Q2&Q3 2024 was originally published in VeChain on Medium, where people are continuing the conversation by highlighting and responding to this story.