We are excited to present the eighth VeChain Foundation Financial Executive Report. This financial report covers the period from May 2019 through to July 2019.

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During this period, VeChain partnered with San Marino Innovation and DNV GL to adopt the VeChainThor Blockchain in San Marino Republic to strive to become the first carbon neutral country. On July 16, 2019, the VeChainThor blockchain recorded the day with the highest number transaction clauses since the mainnet launch — over 1.1 million transaction clauses with over 35 million VTHOs burned.

We are making further progress on solving real-world economic problems and targeting a broader user base with the VeChain blockchain technology.

As always, we sincerely welcome the community to hold us to the commitment of transparency, the rigorous monitoring and usage of 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

At the end of July, the VET circulating supply was 63,030,429,892 which accounts for roughly 72.7% of the total supply, compared with 71% of last quarter end. Within the VET circulating supply, 20,930,516,127 VETs were in the soft-lockups, which makes roughly 24.1% of the total supply. This means around 48.6% of the VET total supply is free to trade on 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 VET based on four different tiers
Economic Nodes staking — each economic node keeps a minimum amount of VET 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. However, in this reporting period the executive team as well as some of the team members voluntarily locked 356 million VETs, which is 64% of the total amount allocated to the team. As of July 31, 2019, over 2.7 billion VETs have been locked up by the team to show the commitment to VeChain’s long term success


** The ecosystem reserve was acquired through the VeChain Foundation Buyback initiative as of the end of July. This reserve will be used to facilitate the long term growth of the VeChain ecosystem.

  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.


Comparing with last period during which the VeChain Summit was held, the total expenditure of this period reduced significantly.

  1. Notes

i) Enterprise Investor Pool

During the reporting period, around 18 million VETs were purchased from the enterprise investor pool by our strategic institutional partners. As always, the partners invested in this pool are subject to lock-up and looking at holding the VETs for long term purposes. We continued conversations with a number of reputable institutional investors in the US, Europe and Middle East, who showed interested in investing in VET and could potentially bring significant resources to VeChain.

ii) Co-Founders, Development Team

In this period, the Foundation distributed 555 million VET as eighth quarterly rewards to the team. During this reporting period, 3 full-time employees joined us in our development, project management and product teams. Same as previous periods, the executive team will continue locking up 100% of their rewards gained in this period. In addition, some of the team members opted to lock up their allocated tokens to show the commitment to VeChain’s long term success. In total, out of the portion allocated to the team in this quarter, about 356 million VETs, around 64%, were locked up voluntarily after being released from the Foundation reserve.


iii) The Operation, Technological Research and Development

During this period, VeChainThor Mainnet v1.1.2 upgrade has been successfully activated at block #3337300, and VIP 191 — designated gas payer became available. With this upgrade, significant security testing and bug bounties were conducted on the VeChainThor Mainnet source code.

In this period, Peter Zhou, VeChain Chief Scientist teamed up with with Prof. V.S. Subrahmanian and his team at the Department of Computer Science, Dartmouth College, and the Paper “C2P2: A Collective Cryptocurrency Up/Down Price Prediction Engine” was accepted by IEEE Blockchain-2019 Conference.

Furthermore, several products were announced to the public, highlighting our achievements and development.

We launched the HSM Based Key Escrow Escrow Turnkey Solution to resolve one of the greatest challenges for the mass adoption of blockchain, which is the private key management. This hardware based turnkey solution is available for customization and independent deployment. Once authorized by VeChain, enterprises and developers can build their own key escrow services based on the solution to better serve their customers

The VeChainThor Wallet v1.4.1 and v1.4.2 were released during this period. Besides keeping optimizing user experience, we have added the token value that users can see the market value in real time

We open-sourced the VeChainThor wallet SDK, which provides a selection of functional interfaces necessary to leverage VeChainThor wallet features. This SDK empowers wallet developers to create their own wallet easily and enables application developers to test their application compatibility in VeChainThor wallet

We also revealed the new official VeChain website. The new website comes with a clear layout of the solutions, products and services and the key features of the VeChainThor blockchain and ecosystem

iv) Business Development

During the reporting period, the VeChain team has managed to build a few renowned partnerships which will lead to more enterprise blockchain applications on the mainnet. In collaboration with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was launched at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar.