Financial Update for April 2021
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, cryptocurrencies, and managed assets currently in possession of the Foundation is illustrated below.
Crypto Asset Liquidation
Formerly, the Lisk Foundation liquidated its assets in order to have enough fiat to cover expenses for 12 months. Going forward the Lisk Foundation will additionally liquidate its assets into stablecoins to cover expenses for another 24 months. Therefore, from the 9th of April until the 31st of May, the Lisk Foundation is liquidating 300 BTC into USDC. This will secure a total run-rate of 36 months, which will cover our ongoing research, development, marketing, and operational expenses for the Lisk project. This will result in making the Lisk project a more attractive choice for both businesses and developers.
Stablecoins have the advantage that they can be actively utilized within the crypto industry to increase our net worth and generate additional income, whilst simultaneously not sacrificing the required stability and liquidity. After careful consideration and research, our current strategy is to use BlockFi that offers market-leading yields in an interest-bearing account, which today is currently earning 8.6% APY. From the monthly interest accrued on this account, we are gradually buying back LSK tokens from the open market, which will be used to partially finance our ongoing community campaigns and the upcoming Lisk Grant program.
This overview shows the expenditures Lisk Foundation had during the last month. We have categorized all expenses into three categories.
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. Employees of the Operations department do not receive any extra remuneration.
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.io, such 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 that are also covered via the daily rate basis in the research, development, and marketing departments.
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.