NEM Foundation Shares New Funding Proposal, Sets Sights on Bringing #BUIDL Back for 2019 Plans
NEM Foundation did not get a good start to the year. Rumors were circulating as 2019 began, suggesting that the platform was dealing with bankruptcy, following the departure of now-former president Lon Wong. However, the current president is working to create a restructured plan that includes a funding proposal, building up the operating structure from the ground up.
The NEM Secretariat Office recently put out an announcement that includes this funding proposal. With 210 million XEM, the company wants to “operate NEM Foundation from February 20, 2019 – February 20, 2020,” “implement new structure,” and “use the existing budget to clear unpaid invoices, employee contracts, miscellaneous expense and start afresh.” These changes reduce the budget of last year at 64.05% and will incur a 69% staff reduction.
To ensure that the public completely understands what will happen from here, NEM Foundation has included an FAQ page that answers what consumers can expect in the “new” version of the platform. The former structure will no longer exist by the end of this month, and the interim global product team leaders will be accommodated accordingly with the transition. By March/April, the funding should be approved, and the new structure should be fulling implemented. Approval will require a 65% majority of “yes” votes, and “the vote will be considered valid if there is a min of 3% POI voting.”
The priority of the foundation is to keep their products as the priority, driven by revenue and held together by the community. Though the leadership is only a month old, elected president Alex Tinsman has committed to prioritizing transparency and accountability on the platform.
Directly from the release, there are three main goals that NEM Foundation has in mind for this year, which include:
- Increased enterprise adoption with the use of Catapult.
- Additional transactions to both the public and private chain after the launch of Catapult.
- Stronger leadership that will provide the necessary support to the community and partners.
The company’s proposal included the breakdown of how the funding will be used, which prioritized technology development over everything else.
Last week, after rumors that arose after rumors of layoffs and financial ruin came about, their crypto asset dropped by 9% within only four hours, which troubled investors. There is also been rumors that the foundation’s spending on marketing was at least $80 million last year, which is high when considering the low liquidity that the company holds.
Despite the issues that NEM has faced, the crypto asset is still a massively popular cryptocurrency, and the Foundation is one of the first platforms to be as bold as they have been about correcting their direction. With the implementation of Catapult, the results will determine exactly what the future holds for the NEM project.