The Nem Foundation is currently facing the sobering reality of only having “one month left in funding.”
The company is now tasked with making decisions for the Nem public chain and spreading global adoption with very limited funds.
In 2018, the Nem Foundation tested the concept of decentralised regional leadership, allowing users in different regions to have a great deal of freedom – providing they were promoting Nem.
However, it installed a new council on January 1st, 2019. In doing so, it discovered that the “existing structure failed.”
The failure stems from a lack of accountability and questionable return on investment (ROI), which led to a burn rate of 9 million XEM per month. XEM is the Nem Foundation’s native cryptocurrency.
Reportedly, the XEM exchange rate has “suffered catastrophic drops” in the last year. This led to the Nem Foundation facing “challenging budget decisions.”
The company is now claiming it is their duty to act quickly to ensure the “longevity of the NEM Foundation ecosystem.”
To remedy the decline, the Nem Foundation has been meeting multiple times per week since December to discuss options.
The devised solution has been to rebuild the company’s operating structure and mission.
By “hitting refresh and starting from scratch” under new leadership, the Nem Foundation is confident it can support its “powerful community.”
The Foundation has done away with regional teams and replaced them with “newly created product-focused teams.” Each of the seven team leaders will be reporting metrics and ROI directly to the council and community to “maintain transparency and accountability.”
The Foundation’s new proposal is to drastically reduce promotional spending and to implement a set of aggressive goals. It is proposing a budget with a burn rate “reduced by about 60% from its previous level.” In doing so, the Foundation hopes to deliver its ambitious goals.
Despite the bad news, the Nem Foundation is “optimistic” about its future.
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