Transparency Report 2024

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 and the circulating supply. The period covered since the last report is August 1, 2023 through July 31, 2024. The report indicates a slightly increased burn-rate in-line with expectations, as well as a modest increase in net assets due to favorable crypto market value developments and diversification.

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 was revalued based on continued divestments of the bank from the crypto sector. Similarly the real estate holdings were updated based on current market value estimates. As of publication of the report the Nimiq Project had the following assets:

119.8 BTC ~ US$ 7.16 Mio
1’002.3 ETH ~ US$ 2.61 Mio
398.0 Mio NIM (besides genesis NIM) ~ US$ 0.54 Mio
EUR, USD & USDC ~ US$ 1.13 Mio
Stake in TEN31 (WEG) Bank ~ US$ 2.20 Mio (reassessed)
Real Estate ~ US$ 2.00 Mio (reassessed)
Loan to ImpactX Foundation: ~ US$ 33.8K
Reserves (see "Use of funds") ~ US$ (-0.36 Mio)

Total Net Assets: ~US$ 15.31 Mio

Use of funds

The use of funds from the end of July 2023 up to the end of July 2024 breaks down as follows:

Product Development Contracting, Compensations: This includes all research, design, implementation and maintenance work regarding the Nimiq protocol on its way to switching from Proof-of-work to Proof-of-stake, the Open Asset Swap Interaction Scheme (OASIS), Cryptopayment Link, Crypto Map, the iOS and Android Nimiq Pay Apps and other related apps and systems. The report indicates the expected, reasonable increase in contracting expenses due to inflation adjustments and team growth. An additional amount of ~US$ 260K continues to be reserved and due pending achievement of development goals (release of Proof of Stake for Nimiq, etc).

~US$ 1’952.8K (fiat + crypto equivalent at time of expense)
~57.4% of total (~64.0% of non-extraordinary)

Marketing, Content, Community: This includes expenses related to creating and distributing educational video and written content, branding and sponsorships, swag production, user and consumer surveys, community project funding, rewards and campaigns, social media management and industry conference expenses. It also includes a phased out membership contribution to the Blockchain for Europe organization and supporting the European “Kryptostadt” and Latin American “Criptociudad” ( translate into “Cryptocity”) efforts that aid NIM adoption. In addition, this covers ongoing community programs such as the Bug Bounty Program and the Community Project Funding with a reserve of US$ 50K for the next 12 months. An amount of US$ 50K is reserved and due pending listing related pre-staking provisions.

~US$ 431.1K (fiat + crypto equivalent at time of expense)
~12.7% of total (~14.1% 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, Annerton Rechtsanwälte, MHP trademark & design attorneys, and additional task specific international legal counsel i.e. for pursuing required licenses, trademarking, terms of services, privacy policies, legal memorandums, etc. The increased cost reflects the trademark efforts around protecting NIM, Nimiq and Cryptocity in various languages and jurisdictions, as well as the setup of an additional European operations entity as one of the many requirements for acquiring the necessary legal umbrella for operating OASIS in the EU zone.

~US$ 213.3K (fiat + crypto equivalent at time of expense)
~6.3% of total (~7.0% of non-extraordinary)

Digital Operations, Equipment: This includes expenses related to hosting, hardware, software, licensing, communications, domains, and other development tools and platforms. The slight increase in this position is mainly due to increased hosting costs and equipment reimbursements for the growing team.

~US$ 165.6K (fiat + crypto equivalent at time of expense)
~4.9% of total (~5.4% of non-extraordinary)

Travel, F&B: This includes expenses related to transportation, hotel, food/beverage, and team building. The slight decrease in expenses here reflects a lowered cost base for hosting hackathons by adding a European location and optimizing the number of hackathons.

~US$ 140.8K (fiat + crypto equivalent at time of expense)
~4.1% of total (~4.6% of non-extraordinary)

Physical Operations, Rent: This includes expenses related to workspace, operational security, hackathon accommodation, and maintenance. In line with the previous category expenses also decreased slightly.

~US$ 146.8K (fiat + crypto equivalent at time of expense)
~4.3% of total (~4.8% of non-extraordinary)

Extraordinary: This includes fees and a bounty buffer for the HackerOne code audit and bug bounty program targeting Nimiq Proof-of-Stake. It also includes an upfront payment associated with the challenging acquisition of a legal umbrella for OASIS in the EU zone. Going forward we expect additional costs around solving this challenge as well as setup costs for the technology and infrastructure as a service for Nimiq OASIS.

~US$ 353.1K (fiat + crypto equivalent at time of expense)
~10.4% of total

Total Use of Funds: ~US$ 3’403.5K (US$ 3’050.4K non-extraordinary)

The monthly burn-rate average comes in at ~US$ 255K (excluding extraordinary expenses). As predicted in last year's report the total expenses related to Product Development Contracting, Compensations have reasonably increased due to the hiring of additional highly qualified contributors, including core, frontend, business and ecosystem developers. With these new engagements, the long-standing team has reached a level of quality and capacity such that no significant further hires are anticipated in the short- to mid-term. Marketing, Community, Content expenses were more or less steady, which is mostly attributable to the holding pattern the project has been in prior to releasing the Proof-of-Stake upgrade and the pending release of OASIS in a first latin american location. The project continues to support the growth of open efforts such as the European “Kryptostadt”, Latin American “Criptociudad” and its recent addition of “Cryptocity” efforts in Gambia and Nigeria on the African continent. In addition efforts are underway to create awareness around the new native Nimiq Pay iOS and Android apps that now support paying with NIM wherever Bitcoin Lightning is accepted, an industry breakthrough by all standards. With increasing activities targeting the adoption of the “NIM <> BTC <> USD Stable Coin Trinity” in the payment acceptance and crypto holding process, we expect a corresponding rise in that expense category going forward. Expenses related to Legal, Administration, Taxes, and Physical Operations, Rent are overall holding steady. The relative increase in Digital Operations, Equipment is attributable to increased hosting costs and growing reimbursements for equipment. The relative reduction in Travel, F&B is attributable to the optimization of hackathon location and frequency.

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 Proof-of-Work protocol (see Nimiq Whitepaper 1.0): 21'000'000'000 NIM. The circulating supply as of the end of July was ~12’220’000’000 NIM (~58.2% of final total).

Details

NIM activated from Token Sale NET (5% of final total): As of the end of July 2024, 861’049’052 NIM have been activated from NET and are part of the circulating supply. The remaining difference (~188’950’948 NIM) that has not been activated from NET is visible at account addresses NQ69 9A4A MB83 HXDQ 4J46 BH5R 4JFF QMA9 C3GN, NQ15 MLJN 23YB 8FBM 61TN 7LYG 2212 LVBG 4V19 and NQ17 YTX4 X5U6 5BUX HN5J V6VV 260V 9UP1 D39S. 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 as further described below (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: ~10’060’000’000 NIM (~47.9% 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, 315’000’000 NIM (1.5% of final total) are available and part of the circulating supply. These funds have not been touched to date.

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, 252’000’000 NIM (1.2% of final total) are available and part of the circulating supply. These funds have not been touched to date. In June 2021 a US$ 33’780 (1 BTC) 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