Every month the Lisk Foundation provides a financial report in which monthly expenditures are transparently broken down.
Total Assets Held
An overview of all fiat currencies, stablecoins, cryptocurrencies, and managed assets currently in possession of the Lisk Foundation is illustrated below.
Generally, the Lisk Foundation is continuously liquidating BTC in order to have enough fiat to cover expenses for at least 12 months and holds the stablecoin USDC to cover its expenses for another 24 months.
Additionally, it is invested in a managed fund and is continuously investing into forms of green energy production, e.g. power plants, to reach environmental sustainability with the Lisk network.
Attention: At the end of July the overview below shows our CHF balance being negative. We were just in the process of converting USDC into CHF. Today, we have over 420,000 CHF in the bank account again which will be visible in our next financial update for August.
Lending and Buybacks
In order to generate additional income, the Lisk Foundation is using BlockFi which provides interest on 6,500,000 USDC, locked until the end 2022. Given the current situation around centralized lending platforms we are withdrawing the monthly yield always immediately to Bitcoin Suisse. In July $47,035.37 USD was yielded from BlockFi.
The Lisk Foundation is also lending away directly to third-party companies. This generates additional interest and ranges between 6% and 8% APY. Currently, 5,500,000 USD are locked in such loans with the interest becoming available only after the lock-up period is over. All lock-up periods will end in 2022.
Previously, the yield generated from BlockFi and the loans given to third-party companies was used to buy back LSK tokens from the open market. Given the current market situation this was stopped and all the yield goes into our treasury until we decide what to do with it.
As a replacement we have started individual buyback programs in May, June and July to benefit from the current market conditions. The overview below provides insights into that.
For August, we are deploying 400,000 USDC to buyback LSK tokens from the open market. More information about this in our next financial update for August.
These LSK tokens are used to finance the Lisk Grant Program in order to incentivize our ecosystem in building ground-breaking blockchain applications.
The overview shown below depicts the overall expenditures of the Lisk Foundation for the last month and is broken down into 2 main categories: Lisk Foundation and Lightcurve.
Bounties & Sponsorships
This includes all marketing-related expenditures such as public relations, influencers, merchandise, events, advertisements, Lisk Centers, and giveaways.
This includes all operational expenses of the Lisk Foundation which consist of the following: salaries, financial and legal, office rental, contractors, e.g. legal advisories, accountants, auditors, and finally taxes.
This covers the monthly invoice from Lightcurve to the Lisk Foundation. This amount is calculated using a daily rate per employee and encompasses all services provided by Lightcurve. The daily rate only applies to employees of the Research, Development, and Marketing departments.
This includes all related costs of the Research team members at Lightcurve who are working on the Lisk Improvement Proposals.
This includes all related costs of the Development team members at Lightcurve who are working on Lisk Core, Lisk SDK, Lisk for Desktop, Lisk for Mobile, and Lisk Service.
This includes all related costs of the Marketing team members at Lightcurve who are working on all facets of Lisk.com, as well as managing public relations, events, business development, promotional activities, design creation, and documentation.
This includes all operational costs of Lightcurve, such as taxes, office rental, utilities, hardware/software, servers, accounting, and legal, as well as the operations and management team members. All associated costs are fully covered with the daily rates from the research, development, and marketing team members.
Disclaimer: All information contained in our monthly Financial Updates is of informational value only. Differences from their actual state may occur due to time variances of the booking of expenses and inflows. Thus, this information cannot serve as an accurate reference point for the Lisk Foundation finances.