Transparency Report

In line with the last report, we would like to present an updated overview of the assets and use of funds for the Nimiq project, as well as updated details of the distribution of NIM tokens with circulating and total supply. The period covered since the last report is July 1, 2019 through July 31, 2020. The report indicates a stabilization of burn-rate as well as no significant change in net assets due to the beneficial clearing of the loan.

Assets and use of funds

Assets

The Nimiq Project continues to hold a variety of liquid and non-liquid assets. The 9.9% stake in German TEN31 (WEG) Bank AG is valued at original participation valuation and does not reflect potential increases in such valuation. As of the end of July 2020 the Nimiq Project had the following assets (valued at the time of finalizing this publication):

296.2 BTC ~ US$ 3.2 Mio
3’791.4 ETH ~ US$ 1.3 Mio
65.0 Mio NIM (besides genesis NIM) ~ US$ 0.3 Mio
Fiat (EUR, USD) ~ US$ 2.6 Mio
Real Estate ~ US$ 1.1 Mio
Stake in TEN31 (WEG) Bank ~ EUR 3.5 Mio (US$ 3.7 Mio)
Reserves (see "Use of funds") ~ US$ (-1.5 Mio)

Total Net Assets: ~US$ 10.7 Mio

Use of funds

The use of funds from the end of June 2019 up to the end of July 2020 breaks down as follows:

Product Development Contracting, Compensations: This includes all research, design, implementation and maintenance work and consultation of third parties regarding the Nimiq protocol and apps related to nimiq.com. The report indicates a further reduction in contracting expenses due to renegotiated compensation schemes (not a reduction in team size). An additional amount of ~$260K is reserved and due pending achievement of development goals (release of Nimiq 2.0, etc).

~US$ 1’309.8K (fiat + crypto equivalent at time of expense)
~35.0% of total

Marketing, Listings, Content, Community: This includes expenses related to creating marketable video and written content, branding, listing integration fees, swag production, community rewards and influencer review fees. It also includes community programs such as the Bug Bounty Program, Community Project Funding with a reserve of $50K for the next 12 months. An additional amount of $120K is reserved and due pending listing related liquidity provisions.

~US$ 415.2K (fiat + crypto equivalent at time of expense)
~11.1% of total

Legal, Administration, Taxes: This includes legal and administrative expenses regarding corporate maintenance, contract review, accounting, professional support from MME Legal | Tax | Compliance, Lara Legal Corp, Sielva Management, Grant Thornton Bankrevision AG and Lucris Finance AG and additional task specific legal counseling i.e. for acquiring payment service provider licenses, trademarking, terms of services, privacy policies, etc.

~US$ 156.4K (fiat + crypto equivalent at time of expense)
~4.2% of total

Digital Operations, Equipment: This includes expenses related to hosting, hardware, software, licensing, and other development tools and platforms.

~US$ 112.4K (fiat + crypto equivalent at time of expense)
~3.0% of total

Travel, F&B: This includes expenses related to transportation, hotel, food/beverage, and team building.

~US$ 85.9K (fiat + crypto equivalent at time of expense)
~2.3% of total

Physical Operations, Rent: This includes expenses related to rent and maintenance.

~US$ 134.0K (fiat + crypto equivalent at time of expense)
~3.6% of total

Extraordinary: Investments, Infrastructure: This includes paying off the loan and beginning setup of the technology and infrastructure as a service for Nimiq OASIS. An additional $1 Mio is reserved for infrastructure, liquidity and market making for OASIS and related services. A further $100k is reserved as part of an anticipated TEN31 Bank dilution event.

~US$ 1’526.3K (fiat + crypto equivalent at time of expense)
~40.8% of total

Total Use of Funds: ~US$ $3’740.0K ($2’213.7 non-extraordinary)

In addition to the expense reductions reported in the 2019 transparency report, Nimiq was able to further reduce legal (minus ~27%), digital operations (minus ~10%), physical operations (minus ~29%) and travel/f&b (minus ~57%) related expenses (time frame adjusted). The monthly burn-rate as of the end of July is holding at around US$ 170K (excluding extraordinary expenses). The further reduction in contractor expenses (from renegotiated terms, not downsizing) has been offset by an increase in ordinary communication and project visibility related expenses. The reduced burn-rate can be expected to reasonably turn up from this level as goal-driven rewards get triggered and travel for hackathons and industry events is expected to pick up again following the Covid-19 disruption.

NIM supply and distribution

In this second part, we would like to describe the distribution of NIM tokens, showing details of accounts and vesting contracts as well as the circulating and total supply as of the end of July.

Quick view

Live summary of NIM supply: http://nim.sh/stats/supply.txt

The total final NIM supply in ~100 years by design of the Nimiq Blockchain protocol: 21'000'000'000 NIM

Details

NIM activated from Token Sale NET (5% of final total): As of the end of July 2020, 855’097’617 NIM have been activated from NET and are part of the circulating supply. The remaining difference (~194’902’382 NIM) that has not been activated from NET is visible at account addresses NQ69 9A4A MB83 HXDQ 4J46 BH5R 4JFF QMA9 C3GN and NQ15 MLJN 23YB 8FBM 61TN 7LYG 2212 LVBG 4V19. Though the deadline for activating NIM has long passed, Nimiq is processing requests on a case by case, manual basis (applying the same conditions of KYC/AML). Being conservative, Nimiq considers them part of the circulating supply.

All other NIM are either acquired through mining or released through a vesting contract (all vesting durations are measured from April 14 2018).

NIM minable (88% of final total): 18'480'000'000 NIM over ~100 years since April 2018. As of the end of July (~22% of final total): 4'609'881'537 NIM, part of circulating supply. The live amount is available here: http://nim.sh/stats/supply/mined/nim.txt

Nimiq Foundation (Project, 2.5% of final total): 525'000'000 NIM at vesting contract address NQ09 VF5Y 1PKV MRM4 5LE1 55KV P6R2 GXYJ XYQF. Vesting is 26'250'000 NIM every 6 months over 10 years. First vesting was in October 2018, as of the end of July, 105’000’000 NIM are part of the circulating supply. These funds have not been touched.

ImpactX Foundation (Charity, 2% of final total): 420'000'000 NIM at vesting contract address NQ19 YG54 46TX EHGQ D2R2 V8XA JX84 UFG0 S0MC. Vesting is 21'000'000 NIM every 6 months over 10 years. First vesting was in October 2018, as of the end of July, 84’000’000 NIM are part of the circulating supply. These funds have not been touched.

Nimiq Team & Early Contributors (2.5% of final total): 525'000'000 NIM at 82 vesting contract addresses, see https://pastebin.com/raw/1eDwDF45. Vesting schedule A (for creators) is 35'000'000 NIM total every 6 months over 3 years and vesting schedule B was 157'500'000 NIM total for month 3 and month 6 (team, early contributors and future team member allocation).

Recommended Block Explorer for Account and Contract Addresses: https://nimiq.watch