Electric Coin Company Q3 2019 Transparency Report

From the Blog:

Why release a transparency report?

Electric Coin Company (ECC) is committed to openness and transparency — as we help evolve and support the Zcash digital currency, and in support of our mission to empower everyone with economic freedom and opportunity. To this end, our transparency report details company income, expenses and use of funds during Q1 of 2019.

Key Takeaways:

  • At the Q1 price of approximately $55 per ZEC, the company and its employees received approximately $449k per month.
  • In response to ongoing market pressures, the company spent less per month than in the previous period, curtailing or deferring certain activities.
  • The company’s operating cost in the first quarter of 2019 averaged approximately $525k per month. An additional 2000 ZEC per month, $110k at $55 per ZEC, were used for employee compensation during the period.
  • The Zcash received from ECC’s share of mining rewards was used to fund R&D, engineering, global adoption efforts, audits, trademark protections and regulatory relations. The specifics are included in the Expenses and Use of Funds section of this disclosure.
  • At the end of Q1 the company held $5.2M in USD and Zcash. The company currently holds approximately $6.4M worth of USD and Zcash.
  • ECC share dilution impact to Founders Reward participants was implemented and effective June 2019. This change supports continued financial sustainability of ECC.

We hope that making the information contained within this report open and accessible demonstrates our high standards and commitment for radical transparency. We invite you to provide feedback in the forum or via email at info@electriccoin.co as we continue to support Zcash development and adoption.


Thanks for this shawn.

One thing I remember reading about the dilution was the Foundation reduced their take by around 15% (so what was 500k went to 350k) I cannot find this information any more. Do you per chance know where I can find it again?

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It’s in the transparency report (compare the tables on pages 6 and 15). The reduction in the Foundation’s received funds is because the Foundation is entirely funded by FR donations from some of the founders (mostly Zooko and his family), and the dilution decreased the amount of FR that the founders receive.


If we assume that the existence of the fund contributed to keeping the price at a level higher than, say, $ 1, then the statement that the founders finance the fund is not correct, we don’t know the price behavior without the fund, therefore financing of the depositors and the company and the fund is the work of the coin buyers and not the people who sell them coins, the value of a coin does not equal the dollar, so in essence its value is as much as the buyer is willing to pay.
I said these thoughts in other branches, and I don’t understand why employees of both the fund and the company don’t use the wording when financing comes from investments (buyers).
There will be no buyers, there will be neither a company (probably) nor a fund or project development.

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Sorry, I also don’t know where it is.