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The NEM Foundation informed the community of the "state of affairs" at the NEM Foundation and responded to the many concerns of the community. The EMS secretariat office explained in detail the situation that the new leadership under the presidency of the Foundation, Alexandra Tinsman, is facing with their plans and clarifications for the future. The NEM Foundation publishes the announcement one day after the rumor of their bankruptcy in order to clear up any ambiguity for the NEM community and its employees.
They have asked for new funding from a venture capitalist and expect increased liquidity in a month. Plus, the answer was a mixture of sugar and salt served on a reality TV set. They confirmed the layoffs, although hope is still there and everything is back on track.
Questions about Community funding of $ 7.5 million
The NEM secretariat office informed the community that it would not use the community fund that it had previously allocated to specific operations. However, they expressed the idea of a crowdfunding approach by the community to help the company with momentary liquidity.
They confirmed that they would publish details of the funding process before the community. They affirmed the ethics of decentralization and the requirement of joint efforts on the part of the community. The NEM project is open-source and the XEM token is decentralized. Therefore, it can be expected that supporters of the crypto-community, currently ranked 18th on Coinmarketcap, financially support the NEM Foundation in difficult times.
An excerpt from the response: "This application will be presented to the community soon. It is important to remember that the NEM Foundation operates as a separate entity and is one of many contributors to the open source NEM ecosystem. Therefore, the NEM Foundation is not NEM. The open source NEM project remains strong and prosperous and Catapult's development is unaffected by the financial situation of the NEM Foundation. "
Message to employees
The NEM Foundation announced that because of liquidity problems, it had suspended all its current operations. This means that some of the current employees are being laid off for a time or permanently depending on budget constraints.
They expressed their disappointment in making such a decision to members and to the NEM community. They expect to receive funding next month that will serve as fuel for the organization. Finally, the secretariat rebadured employees that there was still hope.
"We can not apologize for past decisions before being appointed to the board, but we want to let you know that there is hope for the future.
… We would like to point out that the NEM Foundation does not dismiss any staff member. Due to budget constraints, there are layoffs. In addition, a complete reorganization of the structure is underway. Those who have been laid off will be taken into account for the current openings in the new structure if funding is granted. "
Failure of the promotion-based structure
In a response concerning the 80 million XEM tokens spent by the previous management, the NEM secretariat informs the community that the budget was mainly intended to facilitate marketing projects.
"The initial charter of the foundation was to be the repository of the public channel, to make its decisions and to spread it widely. Awareness was a secondary goal of the foundation as it is expected to increase naturally as a result of (successful) adoption. As a result, in 2018, the funds were mainly devoted to marketing activities and training. "
The company's audit books have revealed huge losses of 9 million XEM per month, while the bear market remains active and things get complicated for the organization. The reason is the failure of the decentralized regional management structure. NEM had set up local teams with a certain degree of autonomy to function as an independent company, provided they promoted NEM.
The announcement made it clear that "we found that efforts were duplicated and indicators of success were inconsistent. We found that very few accounts for doubtful funds and return on investment led to an absorption rate of 9 million XEM per month. In terms of running an efficient organization, the existing structure has failed. "
New product-oriented structure
The new product-based regime would eliminate regional teams for product-focused teams. The level of autonomy enjoyed by the regional teams was also revoked. They said the new administration would involve a strict hierarchy, which will be put in place to keep members aligned with the goals of the NEM Foundation.
"All of the Foundation's employees and contractors will now report to one of the seven product teams. The team leaders are: Chief Technology Officer, Chief Product Officer, Chief Financial Officer, Business Development Manager, Operations Manager, Director of Marketing, and Revenue Manager.
… Each team leader will be responsible for communicating metrics and providing ROI directly to the board and the community to maintain transparency and accountability. "
They proposed a budget reduction of 60% of existing expenditures for operations management. They also aim to monetize all their future projects as soon as possible.
Read also: The NEM Foundation's bankruptcy and potential layoff plan lowers the XEM course, but all is not lost?
Vision of the Foundation and message to the community
The Foundation is eager to make the Catapult update on the NEM blockchain a success. The way forward is difficult and Crypto Winter has made things more difficult. According to them, the update of the catapult will be ready for use and will attract many partnerships.
The Foundation plans to "market Catapult quickly" to generate new revenue to effectively support the entire organization. The secretariat office closed the note with the promise of a belief in purpose, dedication and perseverance.
The NEM Foundation will publish other announcements this month to specifically inform the structural changes and the current plan.
NEM is one of the most popular crypto-currencies on the market. Many other crypto-currencies face liquidity problems, mainly because of the "Crypto Winter" that prevails and should last a little longer than expected. The NEM Foundation is one of the first blockchain projects to implement bold changes to align their goals and products. The implementation and results of the Catapult project will finally decide the fate of the NEM project.
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The NEM Foundation turns to the #NEM community and proposes to move from a promotion-based organization to a product-based organization
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The NEM Foundation informed CoinGape of the state of affairs at the NEM Foundation and responded to the many concerns of the community. The EMS secretariat office explained in detail the situation that the new leadership under the chairmanship of the Foundation, Alexandra Tinsman, is facing with their plans and future clarifications.
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Abhinav Agarwal
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Coingape
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