The NEM Foundation, a non-profit entity focused on the ongoing development of the NEM (XEM) cryptocurrency platform, reportedly acquired $8 million in funding in February to help cover its business operations.
Last month, the NEM project’s team requested that 210 million XEM tokens (appr. $9 million) be released from reserves in order to fund the platform’s development. This request was reportedly approved on February 20 by members of the NEM community.
Getting Ready To "Pivot To A Very New Way Of Working"
On Friday (March 8), the NEM Foundation published a blog post in which it noted the project’s leaders decided on how the first installment of 25 million XEM (appr. $1.05 million) would be spent. Commenting on the NEM platform’s current business strategy, Alexandra Tinsman, the newly appointed NEM Foundation president, told CoinDesk:
I think this is a vote of confidence that the industry is moving forward and that we’re ready to pivot to a very new way of working.
During the historic crypto bull market, the market capitalization of the NEM platform’s XEM tokens had surged past $15 billion. It was also around this time that there were about 150 professionals on the NEM Foundation’s payroll and the organization’s operations expanded to 20 different countries across the globe.
However, due to the sharp decline in the valuations of most cryptocurrencies, including the market cap of all XEM tokens which is now below $400 million, Tinsman revealed that the NEM Foundation laid off around 100 of its staff members.
Preparing To Launch Catapult Blockchain Engine
As mentioned in last month’s funding proposal (published by the NEM Foundation), “88 staff (69%) will be made redundant” by the planned restructuring of the enterprise level, blockchain-focused development organization. According to Tinsman:
It’s in the best interest of companies to be fiscally responsible with their platform, their products and their teams. We need to be product-focused and that’s what we’ve done. This is a sign of good things to come.
Notably, NEM’s management has also announced that it will soon be releasing the “Catapult blockchain engine,” which has reportedly been developed to enhance the performance of both private and public blockchain networks. Jeff McDonald, the interim chief technical officer (CTO) at the NEM Foundation, claims that “the tech itself is doing things that no other blockchain has done before.”
Introducing Sharp Budget Cuts Due To Mismanagement Issues
In January 2019, the NEM Foundation revealed it would be introducing substantial budget cuts “due to the mismanagement of [funds and resources by] the previous governance council.”
After being appointed as the NEM Foundation’s president, Tinsman had requested that additional funds be allocated from the organization’s reserves to cover the foundation’s day-to-day operational expenses. Approximately 90% of 573 NEM community members voted in favor of approving Tinsman’s request. As mentioned, the 210 million XEM allocated to the NEM project will be used to fund the blockchain organization’s operations until February 20, 2020.