With the purpose of fostering transparent communication on our accomplishments on creating tangible economic value by blockchain technology, we hereby present the tenth VeChain Foundation Financial Executive Report, covering the period from Nov 2019 through to Jan 2020.

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During this quarter, an updated VeChain Foundation Governance Charter was approved by the Steering Committee, which serves as a giant step further towards a decentralized public blockchain with the capacity to scale, and at the same time complying with regulators, governments and to meet the needs of large enterprises. Another milestone release, VeChain Whitepaper 2.0 went live to reveal detailed insights of VeChain’s strategies and benchmarks of our achievements. With the aim of maximizing the efficacy of blockchain technology, VeChain has successfully moved past this crucial first phase of blockchain technology adoption, and is primed for the next phase to achieve Business Consensus.

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 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

According to the final result of the all-stakeholders voting which ended successfully on 10AM December 30, 2019, the community made the decision to implement the block list related to the Foundation buyback wallet theft to be permanently introduced in VeChainThor Blockchain, and to permanently take 727,593,289 VET out of the total supply. As communicated recently, the Foundation buyback plan will still continue and more updates will be announced in due course.

As of Jan 31, 2020, the VET total supply on the VeChainThor blockchain decreased to 85,985,041,177, and the circulating amount is 64,423,896,728 which accounts for roughly 74.9% of the total supply. Within the VET circulating supply, 22,181,253,627 VETs were in the soft-lockups, which makes 25.8% of the total supply. By the end of this reporting period, around 49.1% of the VET total supply is free for trading in the open market.


  • 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 VETs based on four different tiers
Economic Nodes staking — each economic node keeps a minimum amount of VETs 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. As of Jan 31, 2020, over 3 billion VETs have been locked up by the team to show the commitment to VeChain’s long term success

  1. 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.


  1. Notes

i) Enterprise Investor Pool

In regards to reaching investment from enterprises, we have been keeping evaluating the offerings on hand and selecting institutional partners who could bring fundamental change, or value, to the long term development of the VeChain ecosystem. Around 18 million VETs were purchased from the enterprises, pouring in more resources into our investor pool. As always, the partners invested in this pool are subject to lock-up and looking at holding the VETs for long term purposes.

ii) Co-Founders, Development Team

In order to deliver better service as a cohesive and passionate team, we have been continuously optimizing the performance review management and incentive program to support the long term success of the project, which led to our decision to distribute 73 million VETs as the tenth quarterly rewards to the team as performance appraisal. During this reporting period, 3 full-time employees joined us in our development team.

iii) The Operation, Technological Research and Development

During this period, there have been notable improvements announced to the public, highlighting our great efforts in R&D in exchange for huge technological achievements, which is illustrated as follows:


Several updates on VeChainThor mainnet code were released to improve the performance and compatibility of the blockchain platform, further enhancing our advantages on business applications.
The new VeChain Sync enables Ledger users to use their Ledger in Sync to access their VETs and VIP180 tokens, and also interact with dApps and sign transactions.
The VeChainThor Wallet v1.4.3 was released during this period. This updated version enables users to input custom URLs in the Discover tab, switch between mainnet and testnet, and reorder the asset list based on your preference.
VeChain Official Explorer went live on December 19 at: https://explore.vechain.org. As the beta version of official explorer, it aims to provide stable and accurate information about blocks and accounts.

iv) Business Development

During this quarter, VeChain has made considerable progress in terms of partnership accumulation and industry experience. VeChain partnered with DNV GL and ASI Group to initiate Foodgates, the first blockchain-enabled cross-continental logistics and trades solution in the industry. Foodgates aims to provide a world premium, trusted blockchain-powered platform for international buyers and consumers of high-end food & beverage products, safeguarding product quality and safety.

Announced partnerships and collaborations (November, 2019 — January, 2019)

ASI Group (November 7)
Mengku Rongshi Tea (November 17)
Anhui Tea Association (December 17)
Cointelegraph Consulting (December 4)