NEM Foundation Prepares Large-Scale Downsides on the Brink of Bankruptcy
Community-funded nonprofit NEM Foundation, which promotes the blockchain of the same name, plans to cut its 150 employees in light of severe budget cuts and imminent restructuring, writes CoinDesk.
According to the new president of the NEM Foundation, Alex Tinsman, the organization intends to send a request to the public fund NEM for the provision of 160 million tokens worth about $ 7.5 million to it to prevent its own bankruptcy..
“In fact, we realized that we could work for another month – the reason for this was the wrong decisions of the previous management team,” she said..
On Thursday, the NEM Foundation will issue a funding request, after which all 202 members of the foundation will be asked to vote for it. The scale of the cuts will depend on the amount of funding that the organization can receive.
According to Tinsman, the fund spent about 80 million XEM between December 2017 and January 2019 primarily on marketing. “We have reduced our activity in this direction, because there is no point in promoting a non-existent product,” she explained, speaking of the Catapult software engine, which is scheduled to launch in June this year..
The developers and NEM user, who asked to remain anonymous, said that former president of the organization, Lon Won, used his position to promote “questionable” initial coin offerings such as Ecobit and ProximaX. ProximaX raised $ 33 million in 2018, and Vaughn is listed as CEO on its website. The developer believes that by doing this, Vaughn undermined the community’s trust in himself.
Tinsman intends to follow a stricter roadmap in 2019. According to her idea, each team will be allocated a limited budget and requirements for public disclosure of documentation describing the tools they are developing for the NEM ecosystem. In addition, she plans to monetize the organization’s activities through, among other things, corporate user training and affiliate marketing, which should reduce the NEM Foundation’s dependence on community funding..