Litecoin Employees Voluntarily Lowered Their Salaries to Cope With Smaller Donation Amounts
Litecoin Foundation employees volunteered to lower their salaries in order to support the organization amid falling donations. In an interview with XCong.com, Litecoin Foundation Board director Xinxi Wang gave the details of how falling donations led to the move. He said:
“Our employees voluntarily decreased their salaries, which helped the foundation weather the storm.”
According to Wang, the decline in donations in the first quarter was due to market stagnation and really influenced the organization’s operations, but the second quarter was “much better.”
Blockcrypto reports that just the other week, The Block’s research analyst Matthew Yamamoto, revealed that the Litecoin Foundation has spent 75% of its cryptocurrency reserves since the second quarter of 2018. The researcher also revealed that as at the end of the first quarter of 2019 the foundation had a balance of $96,400. In 2019, the amount of the monthly donations of the Litecoin Foundation, as a rule, did not exceed $1,000, Yamamoto claimed.
Wang said the organization did not actively solicit donations from the community in Q1. Also, the total volume of assets controlled by the Litecoin Foundation was affected by the drop in the rate of LTC.
According to Wang, the foundation received hundreds of thousands of dollars in donations and they have progressively been signing new deals or partnerships in 2019. Wang said that going by the progress this year, the foundation is still on the right trend and can only grow stronger with time.
Wang was asked about the claims that Litecoin Foundation is mainly supported by Charlie Lee whose donations accounts for over 80% of the total donations. The director said that this was a sign that Charlie Lee believes in LTC and is committed to the project. Wang also indicated that most of the donations for the foundation is spent on operations such as salaries and marketing.
The director was quick to point that his foundation was still in its infancy stages and is strategically working to enhance its strategic plans targeting long-term success. The Litecoin foundation director said that they are targeting a crowdfunding system in the near future to support its objectives.