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.
Lending and Buybacks
In order to generate additional income, the Lisk Foundation is using BlockFi which provides an interest-bearing account with variable interest rates. Please refer to the BlockFi interest rates to learn more.
To spread risks and liability, we are also lending away directly to third-party companies. This generates additional interest and currently ranges between 6% and 8% APY.
Similar to May, changes were implemented this month regarding lending and stablecoin (USDC) holdings. The reasoning is that in times when the market is down, the USDC holdings become more important. These changes will result in significantly lower risk for the Lisk Foundation but also a lower monthly yield.
1M USDC was withdrawn from 1 crypto entity entirely. For another entity, 0.5M USDC was withdrawn, with the remaining 0.5M USDC being withdrawn at a later time. 1M USDC will be withdrawn from a third entity as soon as the agreement allows it. 4M USDC will remain on a 4th entity as it was determined to have very low risk.
The markets will continue to be monitored for more potential changes. As always, any changes will be fully transparent and communicated to the community.
Previously, with the interest accrued, we were purchasing LSK tokens directly from the markets on an hourly basis with the help of Bitcoin Suisse. Now, the interest payments from the 4 entities are only being accrued after a 6 month period and BlockFi’s interest is lower than before. In order to benefit from the current market conditions, we are increasing our monthly buyback until the end of July by using our previously existing USDC reserves on Bitcoin Suisse. For July we will buy back a fixed 150,000 USDC of LSK tokens. Afterwards, we will solely use the interest accrued through our loans again.
Same as before, 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.