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 August 1, 2020 through July 31, 2021. The report indicates a project growth induced increase in burn-rate as well as a significant increase in net assets due to beneficial crypto market value developments.

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 2021 the Nimiq Project had the following assets:

201.9 BTC ~ US$ 8.30 Mio
2’036.4 ETH ~ US$ 4.92 Mio
101.0 Mio NIM (besides genesis NIM) ~ US$ 0.43 Mio
EUR, USD & USDC ~ US$ 6.30 Mio
Stake in TEN31 (WEG) Bank ~ US$ 3.70 Mio
Real Estate ~ US$ 1.10 Mio
Loan to ImpactX Foundation ~US$ 33.8K
Reserves (see "Use of funds") ~ US$ (-1.81 Mio)

Total Net Assets: ~US$ 22.97 Mio

Use of funds

The use of funds from the end of July 2020 up to the end of July 2021 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 on its way to 2.0, the Open Asset Swap Interaction Scheme (OASIS) and related apps and systems. The report indicates a reasonable growth in contracting expenses due to growth of team size and competitive compensation adjustments. An additional amount of ~US$ 260K continues to be reserved and due pending achievement of development goals (release of Nimiq 2.0, etc).

~US$ 1’662.6K (fiat + crypto equivalent at time of expense)
~47.1% of total (~61.6% of non-extraordinary)

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

~US$ 542.9K (fiat + crypto equivalent at time of expense)
~15.4% of total (~20.1% of non-extraordinary)

Legal, Administration, Taxes: This includes legal, tax and administrative expenses regarding corporate maintenance, contract review, accounting, professional support from Lara Legal Corp and additional task specific legal counseling i.e. for acquiring payment service provider licenses, trademarking, terms of services, privacy policies, etc.

~US$ 143.9K (fiat + crypto equivalent at time of expense)
~4.1% of total (~5.3% of non-extraordinary)

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

~US$ 126.4K (fiat + crypto equivalent at time of expense)
~3.6% of total (~4.7% of non-extraordinary)

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

~US$ 96.8K (fiat + crypto equivalent at time of expense)
~2.7% of total (~3.6% of non-extraordinary)

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

~US$ 126.7K (fiat + crypto equivalent at time of expense)
~3.6% of total (~4.7% of non-extraordinary)

Extraordinary: This includes the previously anticipated anti-dilution share purchase from TEN31 Bank, integration fees for payment system integration and continued setup of the technology and infrastructure as a service for Nimiq OASIS. An additional US$ 1.5 Mio is reserved for additional infrastructure and market making for the fiat atomic swap as OASIS expands into new markets.

~US$ 827.5K (fiat + crypto equivalent at time of expense)
~23.5% of total

Total Use of Funds: ~US$ 3’526.8K ($2’699.3 non-extraordinary)

Operational expenses related to legal, digital operations, physical operations and travel/f&b are holding reasonably steady in line with inflation and project growth. The monthly burn-rate as of the end of July is around US$ 225K (excluding extraordinary expenses). This reflects an increase in monthly contractor expenses due to team growth and competitive rate adjustments, as well as an increase in marketing and project visibility related expenses. Travel for hackathons was able to take place despite the circumstances and it is expected that travel for industry events will also pick up following the Covid-19 disruption.

NIM supply and distribution

This second part describes 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 over ~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 2021, 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: 6’240’467’109 NIM (~29.7% of final total) are part of the circulating supply. The live amount mined to date 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, 157’500’000 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, 126’000’000 NIM are part of the circulating supply. These funds have not yet been touched. In June a 1 BTC (US$ 33’780) donation was made to the charity:water’s bitcoin trust with an interest rate free loan from Nimiq to the ImpactX Foundation.

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) was 35'000'000 NIM every 6 months over 3 years and vesting schedule B was 157'500'000 NIM month 3 and month 6 (team, early contributors and future team member allocation).

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