The VeChain Foundation’s Q1 report has been published. It states that the foundation’s treasury accumulated $1.2 Billion in cryptocurrencies by quarter end. This is a slight decline from $1.38 Billion as reported in Q4 2021. Surprisingly, the foundation behind VeChain only spent roughly 4.1 million during the first three months of 2022 – mainly for business development and operational costs.
Expenses overshadowed and financed by the Treasury Fund
According to the report, the Foundation ensured investors that its treasury was in a healthy state, with over $1.2 billion assets in stablecoins, ETH, BTC, and VET – VeChain’s native token. Regarding the loss as compared to last quarter, the report said it was caused by “crypto market fluctuations and other VeChain Foundation outgoings.”
Out of $4.1million spent in the first quarter alone, $1.8 million was spent by the Foundation on ecosystem development. These included community events, partnerships, custodians and wallet providers, brokers, as well as ecosystem project cooperation. This was the largest expense in the quarter. The next expense was ecosystem operations that cost about $1.1million.
Despite an impressively well-managed financial statement, the Foundation did no detail about income for the quarter. Although transaction fees, which are paid between validators or other stakeholders, should have been a major source of the Foundation’s revenue, no fee-related data was provided in the report.
VeChain, a layer-one Blockchain designed to address issues in supply chain sustainability and supply chain management, continues to expand its carbon management services using blockchain for countries.
Earlier this week, the project announced a partnership with Amazon Web Service (AWS) to build the VeCarbon emission management software-as-a-service (SaaS) system for serving China’s carbon neutrality goal in 2060.
The Foundation had launched the first stablecoin VeUSD earlier. This was developed by Stably, and issued by Prime Trust, an Nevada-based trust company. Each VeUSD is fully backed with fiats and pegs 1:1 to USD. The report stated that $5,249.789 worth of stablecoin had been produced by Q1.