Dear Aergo stakeholders,

Today, we are pleased to release our first Quarterly Project Update (QPU). The purpose of this report attached below and of future QPUs is to update our key stakeholder groups on our performance, the management and financial position of the project, how we continue to operate as a not-for-profit organization and to further elaborate on the core philosophies that direct our strategy going forward.

We believe in transparency and openness.

Trust, transparency, and accountability are some of the most paramount principles to the Aergo project. As a long-term project looking to create a self-sustaining open-source ecosystem around our platform, accountability to both ourselves and to our stakeholders is critical. The Aergo Organization looks to drive this open-source ecosystem on its journey to self-sufficiency using some of the best governance practices possible, for any project involved with and centered on blockchain.

We strive to lead the industry by following operating and communication models that not many other projects are able to match. Our aim is to instill trust, not only in our community, but also in a nascent industry where transparency is central to its value proposition. In fact, trust and transparency are the main reasons for its existence in the first place.

This QPU starts with an opening letter from myself where I talk about Aergo’s story, and why we chose to begin releasing regular updates on information that some may consider commercially sensitive. The depth of disclosure in a report like this is usually only found in reports that companies share internally with shareholders and board members.

In this report, we cover a few important matters that we look to regularly update our stakeholders on, and in order to remain transparent and keep them up-to-date with the status of the Aergo project. In this QPU we cover:

How Aergo performed in 2018

Further details on Aergo’s strategic partnership with Blocko (existing business agreement, and now the expansion of the business agreement)

A summary of Aergo’s 2018 financials (financial backstory, use of token sale proceeds, updated token metrics and our new portfolio management)

A comprehensive summary of Aergo’s go-forward strategy for 2019 including its spending outlook (operating model, technology buildout, ecosystem buildout, early lighthouse customers, financial plan, use of proceeds)

Questions

Over the past few days, we’ve received a number of concerns from our community on various aspects of the Aergo project. We are more than happy to address all of these concerns. Concerns we have received will be addressed in an article provided below. Furthermore, we urge our community (and other stakeholders) to continue to raise any questions they have. We strive to answer all questions in an open, frank, and transparent manner.

There are still some matters that must be kept confidential in order to comply with legal constraints that we must abide by in order to ensure that this project can remain operational. We will try to inform our community on all the information that we can provide at this given time.

We also ask that our community remains patient with us when they do have future concerns. While always happy to engage with our community, addressing some questions requires legal and financial consultation or approval. The time costs of some of these consultations are not inexpensive.

We will also be hosting an AMA session in our Telegram group (t.me/aergoofficial) on Wednesday, January 9, 2019, at 09:00 GMT. We plan to continue to host AMA sessions like this. The best way to know about these AMA sessions before they happen is to follow us on Twitter.

Addressing Key Questions from Our Stakeholders