The VeChain Foundation has published its fourth quarterly Financial Executive Report, the first such report since the launch of the VeChainThor Mainnet.

According to its Medium post published, the report covers the period between May and July 2018 and seeks to ensure that the team upholds the values of transparency and proper usage of funds.

The community will also use the details provided in the report to keep tabs on the development process as well as other aspects of the VeChain Foundation.

The financial report in detail

The latest financial report by the VeChain Foundation covers a number of key aspects that highlight how funds have been used as well as other developments that seek to strengthen the project.

VET Supply

The first thing the VF notes is that the circulating supply of VET has increased by 4 percent since the last quarterly financial report.

According to the report, the current total supply of VET tokens on the VeChainThor blockchain is 86,712,634,466. Of these, circulating supply accounts for 65 percent while non-circulating supply accounts for 35 percent.

Circulating supply refers to VET held by the community, while non-circulating supply is the number of VET held by the Foundation.

The report shows that its circulating supply increased from 52,885,434,400 VET on April 30 to 56,600,371, 953 VET by July 31.

At the time of the publication of the report, the total non-circulating supply stood at 30,112,262,513 VET, with the foundation releasing 3,714,937,553 tokens into circulation.

Those who have led to the increase in circulating supply were:

Enterprise Investors — VeChain says it has entered into agreements with involving several high profile enterprise investors who have all bought and agreed to hold VET for the long term.

However, the team did not disclose any of the enterprise investors due to the nature of the business contracts.

Co-Founders and the Development Team — VeChain distributed a total of 517 million VETs to its team as part of their fourth quarterly rewards.

The foundation has acknowledged that the value if slightly higher than in the previous quarter, attributing this to the expansion of the team as more members joined.

Project operations and Technological development —this is yet another of the areas that contributed to the increase in circulating supply of VET.

Most of it was used to fund the project’s ongoing operations and other technological developments.

The funds were used to improve the network’s security through testing and conducting bug bounties on the VeChainThor Mainnet source code.

Other areas included the development of built-in smart contracts, VeChainThor wallet, and deployment of the authority masternode.

The report also reveals that the foundation was able to spend more funds in VET as opposed to utilizing fiat, Bitcoin or Ethereum, a very positive sign for investors and the community.

Token swap status update

Another important aspect of the report concerned an update on the VEN to VET token swap process. It notes that, by September 10, the swapping of VEN with VET was at a completion rate of about 93.5 percent of all ERC-20 VEN tokens.

The swap process was undertaken under inspection by an independent third party, which will present a report of its findings to the crypto’s Steering Committee for official review.

The swap involved sending all ERC20 VEN tokens to unspendable addresses before any VET distribution took place to safeguard against the possibility of these tokens reentering circulation.

The foundation has also noted that all those still holding VET tokens have an opportunity to swap them as long as they hold the tokens on an Ethereum address they control.

According to the report, the VeChain Foundation has promised to continue providing the token swap service until the swap concludes.

ETH expenditure

The foundation also released detail of how they utilized ETH in various expenditures. In general, the total expenditure in terms of USD that required ETH dropped within the period covered by the report.

The main reason for the drop is the increase in the number of partners and service providers who took VET as payment and not ETH.

According to the report, most of the ETH was utilized in Technological Research and Development.

During the period from May to July, the platform had to engage several third-party security providers like Slowmist, Hosho Group, and Secureware who tested the VeChain source code and its built-in smart contracts.

In addition, the team engaged a number of academic research partners as part of the VeResearch program that is scheduled to be announced at a later date.

Another key area that saw a significant amount of ETH expenditure was in business development. The VeChain team revealed that they had struck a number of key partnerships with enterprises.

The team also ran an aggressive campaign to promote the VeChain blockchain technologies to an expanding audience, mainly in the tech industry.

Partnerships and collaborations

VeChain has been very busy in the last four months as indicated in the report and by looking at the number of key partnerships and collaborations secured.

In this period, the VeChain Foundation was able to sign partnerships with:

Bright Foods and Shanghai Xiandao Food (May 16);

Lingang International Manufacturing Exhibition Trading Centre (May 27);

Shanghai Wine and Liquor Blockchain Alliance (June 7);

DB Schenker (June 12); and

Totient Labs (July 10).

Compliance and Legal

Another key highlight of the quarterly report involves the compliance and legal segment to ensure that it remains compliant with all legal requirements across all over the world.

It, therefore, has engaged a number of professional service providers to assess its products, review the company’s service agreement as well as its privacy policy.

Ecosystem Development Investments

The team has also made public the various investments made in the development of the VeChain ecosystem.

The report says that VeChain Foundation formed a strategic partnership with an undisclosed entity whose versatility in finance, investments, and technology among other services will boost the VeChain platform. According to the report, more about this strategic partnership will soon be made public.

As part of future developments, the team has plans to continuously evaluate and look for projects that will aid in achieving more adoption.

The team then revealed a number of dApps ready for development on the VeChainThor mainnet, including:

Plair;

Decent.bet;

MustangChain;

OceanEx;

Safe Haven;

Esprezzo; and

Cahrenheit.

Other developments within the ecosystem will see VeChain invest blockchain infrastructure and smart contract security. It will also venture into improving scalability and interoperability to boost the growth of the VeChain Ecosystem.

In conclusion, the foundation has promised to be more transparent in its dealings with the community as part of the new era of the VeChainThor Mainnet. All efforts are expended towards making VeChain bigger and more powerful in the blockchain industry.