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.
Lending and Buybacks
The Lisk Foundation is continuously liquidating BTC in order to have enough fiat to cover expenses for at least 12 months. Additionally, it holds the stablecoin USDC to cover its expenses for another 24 months. In order to generate additional income, since May 2021 we are using BlockFi which offers 5% APY in an interest-bearing account. Additionally, in December 2021, 6.5M USDC will be transferred to BlockFi and will be locked for a period of 12 months at a 8.5% fixed percentage rate.
Using the interest accrued on this account, we are purchasing LSK tokens directly from the markets with the help of Bitcoin Suisse on a daily basis. These LSK tokens are used to finance the Lisk Grant Program.
Crypto Asset Liquidation
In October, 180 BTC were transferred to Bitcoin Suisse AG to be liquidated until December 15th to fulfill our requirements of 1 year of fiat (33%) and 2 years USDC (66%) due to an increase in expenses. The final numbers of this liquidation will be disclosed in the financial update for December.
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 covers all costs associated with the Lisk Bug Bounty Program, Lisk Grant Program, and 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.