NEO Foundation Mid-Year Financial Report - The Key Points

The NEO Foundation on June 10, 2019, released its preliminary mid-year financial report, with results up to May 11, 2019.

The report details the Foundations assets, including movements of NEO and GAS, as well as other non-NEO assets. The preliminary version of the mid-year report is subject to changes, and the final version of the mid-year report will be released by August 31, 2019.

The report is laid out in several sections and begins with the discussion of the allocation and usage of funds.

Key Highlights

According to the report, there were approximately 50 million NEO tokens distributed to those who participated in fundraising, and another 50 million NEO tokens were kept for the NEO Foundation, with the breakdown and usage of these as follows:

10 million NEO are earmarked for the compensation of NEO developers and Foundation members.

An additional 10 million NEO will be used as motivation for NEO developers in the ecosystem.

15 million NEO are meant as investment capital for other blockchain projects, and the final 15 million NEO are retained by the Foundation as a contingency fund.

It was also noted in the report that the marketing expenses during the ICO period caused NEO distribution to exceed expectations by 0.48%, leaving 49,517,932 NEO under the management of the NEO Foundation.

As of the report date, 5,646,400 of these tokens have been used or spent. Additionally, there are 14,410,363 NEO that are unlocked and available, but unspent and 29,461,169 NEO which remain locked and unavailable to the circulating supply.

The NEO Foundation gave the breakdown of spent NEO tokens as follows:

3,311,140 NEO have been used to compensate NEO core developers and for NEO Foundation and NEO Global Development operational expenses. 827,024 NEO have been used to promote the growth of the NEO ecosystem. And 1,508,236 NEO has been invested in other blockchain projects (details provided later).

In addition to those expenses, the NEO Foundation approved a Giveback Program in 2017 that returned a total of $1,156,043 to 558 individual NEO fundraising participants. It’s notable that this is the first time a blockchain project has refunded all of the fundraising contributions in this way.

The report also notes that at this time there are 115,612 NEO that have not been claimed from the fundraising distribution. Those tokens will remain available to be claimed until October 17, 2019, after which they will be returned to the NEO Foundation.

Those who think they may have unclaimed NEO tokens from the fundraising can find claim instructions here.

NEO Foundation Investments

The report shows that following the creating of the NEO Eco Fund and the NGC Fund 1 there were 1,090,003 invested into the former and 206,502 NEO invested into the latter.

The NEO Eco Fund has as its mission to “grow the NEO ecosystem by supporting projects that have material synergies with NEO infrastructure.” It is managed by NEO Global Development.

The NGC Fund 1 was created as a for-profit hedge fund investing in blockchain projects that are not considered to be direct competitors of NEO. It is managed by NEO Global Capital.

In addition to the allocation of NEO to each fund, there was an investment of 697.58 BTC into the NEO Eco Fund and 362.71 BTC into the NGC Fund 1. These BTC came from the proceeds of an investment of 197,431 NEO into several projects before the investment funds were created. Those investments were exited and the proceeds were put into the investment funds.

With the inclusion of all funds, the NEO Eco Fund has total investments of 3,369.62 BTC, and the NGC Fund 1 has a total investment of 821 BTC.

Dividends from capital increases have not yet been distributed by either fund.

Total assets held by the NEO Foundation are $535,144,370 and include NEO, GAS and non-NEO assets.

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