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The NEO Foundation (NF) has published a draft financial report, noting the distribution and usage of NEO and GAS, alongside details on other investments and assets managed by the NF. The report is noted to be accurate as of May 11th, 2019, with a full version noted to be released by August 31st, 2019.

Initial Fundraising and Unclaimed NEO

The NEO Foundation reported that it raised approximately US $97,500 and 8,169 BTC during fundraising. Slightly over 7000 BTC were exchanged to US $8,388,747 between October 2015 and February 2018 to cover NF and NGD operational expenses.

In 2017, the NF actioned a Giveback Program which returned US $1,156,043 to 558 NEO fundraising participants. The NF noted that it was the first open-source blockchain project to refund entire fundraising contributions in this manner.

Of the 50 million NEO tokens to be distributed during fundraising, the NEO Foundation acknowledged that 115,612 NEO have yet to be claimed. These tokens will be returned to the NEO Foundation if not claimed before October 17th, 2019.

Details on the claim process are outlined here. Unclaimed NEO can be viewed in the address: AKJZjHUToTpEizwcWvcxsEUg3DE6HD24jq

Allocation and Usage

The financial report outlined a section of the NEO whitepaper, which specifies that approximately 50 million NEO tokens were distributed to fundraising participants, and 50 million were retained for the purpose of protocol development and ecosystem growth. The allocation for these funds are as follows:

  • 10 million NEO – used to motivate NEO developers and NEO Foundation members
  • 10 million NEO – used to motivate developers in the NEO ecosystem
  • 15 million NEO – used to invest in other blockchain projects
  • 15 million NEO – retained as a contingency fund

The NF also noted that annual usage of NEO should not exceed 15 million tokens per year.

In the report, the NF noted that due to marketing expenses incurred during fundraising, NEO distribution exceeded the planned quantity by 0.48%, leaving 49,517,932 NEO tokens under NF management.

Of these tokens, 43,871,532 NEO remains unused. 14,410,363 NEO are unlocked and available but yet to be spent, and the remaining 29,461,169 NEO are locked and outside the circulating supply. Details on the most recent token unlock may be found here.

5,646,400 NEO have been expended by the NF as of May 11th, 2019, distributed as follows:

  • 3,311,140 NEO – Used to finance NEO core developers, NF and NGD operations
  • 827,024 NEO – Used to finance and motivate the growth of the NEO ecosystem
  • 1,508,236 NEO – Invested in other blockchain projects (outlined below)

NEO tokens managed by NF can be verified under the following addresses:

Investments

Following the creation of NGC Fund 1 and NEO Eco Fund, 206,502 NEO and 1,090,003 NEO were invested into each respectively. 14,300 NEO is also noted as being ‘loaned’ to the NEO Eco Fund project.

NGC Fund 1 is a for-profit hedge fund that invests in “projects that do not directly compete with NEO,” and is managed by NEO Global Capital partners. A list of major projects that Fund 1 was used to invest is listed in the original report.

The NEO Eco Fund is managed by NEO Global Development, and aims to “grow the NEO ecosystem by supporting projects that have material synergies with NEO infrastructure.”

Additionally, according to the NF, 197,431 NEO was invested into several projects prior to the establishment of NGC Fund 1 and the NEO Eco Fund. These investments were exited with 1,060.29 BTC. 362.71 of these Bitcoin were reinvested into NGC Fund 1, and the remainder was reinvested into the NEO Eco Fund.

These investments bring the total fund values to 821 BTC for NGC Fund 1, and 3,369.62 BTC for NEO Eco Fund.

The two funds are denominated in units, valued at 1 BTC each (821 units for Fund 1, 3,369.62 units for NEO Eco Fund). As of March 31st, 2019, the unit value for Fund 1 increased to 5.06 BTC, and the unit value for NEO Eco Fund increased to 7.33 BTC.

Dividends have not yet been distributed by either fund, and final dividends will vary depending on market liquidity.

GAS Movement

The NF reported that it had acquired a total of 5,116,932.80 GAS via claims and network fees to its consensus nodes.

Of this number 993,369.14 GAS has been moved outwards; 759,377.55 GAS to core developers and for expenditure by NGD/NF, and 233,991.59 GAS invested into the NEO Eco Fund.

All GAS managed by NF is held in the address: Ae2d6qj91YL3LVUMkza7WQsaTYjzjHm4z1

Remaining Assets Managed by NF

To conclude the financial report, the NF noted its remaining assets, priced according to coinmarketcap.com on May 11th, 2019. These quantities are as follows:

  • US $442,897,068 is held in NEO and GAS.
  • US $62,054,849 is held in non-NEO assets such as BTC, ETH, and USD
  • 4,190.62 BTC (US $30,192,453) is in NGC Fund 1 and NEO Eco Fund investments

The NF notes that as dividends have not been paid for the investment portfolio, it calculates the assets held by cost price rather than market value.

The full report can be found at the link below:
https://neo-cdn.azureedge.net/files/NEO%20FINANCIAL%20REPORT%20DRAFT_20190605.pdf