the VeChain Foundation released its Q1 report and stated that its treasury reached $1.2 billion by the end of the quarter cryptocurrencies has amassed, a slight decrease from $1.38 billion in Q4 2021. Surprisingly, the foundation behind VeChain only gave out about $4.1 million during the quarter from the first three months of 2022 — mostly for business development and operational expenses.
Spending in the shadow of the Treasury Fund
According to the report, the foundation reassured investors that its treasury was in a healthy state, with over $1.2 billion in assets in stablecoins, ETH, BTC and VET – VeChain’s native token. Regarding the loss compared to the last quarter, the report states that it was caused by “crypto market volatility and other expenses from the VeChain Foundation.”
Of the $4.1 million spent in the first quarter, the foundation spent $1.8 million on ecosystem business development. These included partnerships, custodians, Wallet-Vendors, brokers, community events and collaboration on ecosystem projects. This expense accounted for the highest amount spent during the quarter. Next was ecosystem operations, which cost around $1.1 million.
Despite an impressively well-maintained balance sheet, the foundation did not disclose its earnings for the quarter. Transaction fees shared between validators and other stakeholders should have been an important source of revenue, but the report didn’t include fee-related data.
As a layer oneBlockchainwhich was developed to address supply chain issues and sustainability, VeChain continues to expand its blockchain-based carbon management services for countries.
Earlier this week, the project announced a partnership with Amazon Web Service (AWS) to build the VeCarbon emissions management software-as-a-service (SaaS) system to achieve China’s carbon neutrality goal in 2060.
Before that, the foundation had its first stablecoin VeUSD, developed by Stably and issued by Prime Trust, a Nevada-based trust company. Any VeUSD fully backed by fiat is pegged 1:1 to the USD. The report noted that $5,249,789 worth of the stablecoin had been minted by the end of the first quarter.
Source: Crypto News Deutsch