7.5 Million USD Required to Rescue NEM Foundation, While the Foundations Plans Staff Layoffs

The nonprofit, funded by the community- NEM Foundation is facing a difficult time. It needs funds badly to survive. There are plans from the foundation to lay- off across its entire staff. The Foundation’s staffs consist of 150 people. This tight measure is being taken given the foundation is planning very tight budget cuts. The foundation is trying to safeguard itself before the restructuring takes place.

On 27th Feb, according to the reports, Alex Tinsman (NEM Foundation’s recently elected president) told that the NEM Foundation which is based in Singapore is planning to ‘submit a request to the NEM Community fund for 160 Million Tokens.’ This would roughly equate to 7.5 Million U.S. Dollars. The request will be made to rescue the foundation from challenging times.

As per CoinMarketCap, currently, XEM ticker has listed the NEM tokens. As of now, the number of circulating tokens in the market is 9 Billion. As per the market capitalization scale, XEM holds the 18th spot when it comes to the world’s largest cryptocurrency.

Tinsman started handling the responsibility of the NEM Foundation in January this year. In the interview he said-

“Basically we realized we had a month to operate, due to the mismanagement of the previous governance council.”

After announcing about the funding request, the two hundred two members of the NEM foundation will be requested to cast their votes on the funding request in February itself. These members are the people who go through identity checks and also submit 50 U.S. Dollars as a membership fee every year. Tinsman further added that this voting would bring out the exact number of layoffs required which is dependent on the approved amount of funding by the community of these members.

Back in 2015 when the former president headed the foundation- Lon Wong, the NEM Foundation’s XEM token was launched. The main utility of the token is for transaction and service fee on the blockchain of NEM.

On the other hand, the end of this year will see the launch of- ‘Catapult.’ Catapult is NEM Foundation’s native engine software. Meanwhile, NEM projects are seen often testing areas such as voting. For instance, last year in August, NEM partnered with Ukraine’s Central Election Commission, to create a ‘test vote’ project with the help of NEM Blockchain platform. This trial was conducted, and Oleksandr Stelmakh who works for Ukraine’s Central Election Commission commented on the trial on the social platform- Facebook. He said-

“One of the basic useful properties of the blockchain is the impossibility of making changes to the saved information. […] These are the properties we tried to use to save the information of the local ballot sessions. […] It must be noted that the experiment was held in the test environment of the blockchain NEM and for the transactions used by the test coins that were kindly given the representative of the NEM Foundation in Ukraine, Anton Bosenko. The blockchain test environment has 28 nodes.”

Not only will these elections help in the upcoming decision for the amount of funding that will be generated, but the election of Tinsman was also a result of such elections process that NEM’s platform conducted in the past.

Further the current president of the Foundation revealed that the NEM Foundation had spent around eighty Million XEM between Dec. 2017 and Jan. 2019. This amount is mainly spent on marketing. When the former president was requested about feedback on the amount spent by the foundation, Wong refrained from commenting. Further, the current president of the Foundation said-

 “We have reduced marketing activities because it does not make sense to market a product [Catapult] that is not out yet.”

One of the NEM users who prefers to stay anonymous given he has directly worked with the departed leader revealed that the former president of the Foundation made a mistake in using his visibility at the foundation to encourage ‘sketchy’ ICO (initial coin offering.) For instance, Ecobit and ProximaX were promoted. On ProximaX Ltd. sales increased and touched  33 Million U.S. Dollars mark last year, along with the announcement of Wong becoming the CEO of the company; the anonymous developer expressed that this was considered as a breach of faith by the community. He further added-

“There is not a whole lot of people working on this platform. Even though it is easy, the community is not there unless you go to Japan. […] We need more developer traction on this platform.”

On the glob newswire, the decentralized platform ProximaX Ltd. made an announcement last year about the listing of its XPX utility token on Kryptono Exchange, and about the rise in their sale with 33.7 million token. On this Lon Wong, the former NEM president said-

“There is clearly enthusiasm within the crypto community to have this kind of decentralized app development solution really hit the ground running. ProximaX and XPX are crucial components of NEM’s decentralized ecosystem, including NEM blockchain and Catapult.”

Tinsman, on the other hand, is now planning to take a more disciplined plan for this year for the growth of NEM Foundation. She described how the teams would be allotted defined budgets. Also, they will be required to follow more open source documentation of their growth, which will serve as building blocks for the foundation. She added-

 “The community will also be voting on these [funding requests] and which ones we should be moving forward with.”

The current president also revealed that there are proposals for monetizing the NEM Foundation’s activities this year. This will include plans such as enterprise training and market affiliation. The main intention behind these plans is to lessen the dependency on community funding support. As per her, the restructuring is a positive step forward. She added-

“It is really exciting to me that NEM has a strong suite of tools and a community that is moving forward to change the future. And now we can support them in meaningful ways.”

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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