VeChain Financial Report — Q1 2025
Dear Community,
The opening quarter of 2025 marked yet another a transformative period for the VeChain ecosystem. With major protocol upgrades taking centre stage and a backdrop of rapid user/transaction growth powered by the VeBetter platform, Q1 was a period of acceleration for VeChainThor.
Following the publication of our ambitious ‘VeChain Renaissance’ technical roadmap — a wishlist of updates including upgraded staking, revamped tokenomics, a new consensus model, Full EVM equivalence and JSON RPC integration — the stage is set for radical evolution — necessary, as we continue our pursuit of delivering real world adoption for blockchain.
The wider ecosystem welcomed new partnerships under the TKO umbrella, including a deal with the Power Slap league, opening the doors to new audiences, and Wanchain, the interoperability protocol, delivering cross-chain bridging capabilities to over 40 leading blockchains for the first time, opening new pathways to adoption and liquidity.
On the community governance front, a successful all-stakeholder vote took place, helping launch the Galactica testnet – phase one of VeChain Renaissance – demonstrating the centrality of community influence in the direction of the protocol’s evolution. Once the second stage of VeChain Renaissance goes live - ‘Hayabusa’ - this importance will only grow, with stakers helping decentralize and secure the protocol, earning for their efforts.
By the end of Q1 2025, the Foundation’s treasury stood at $218,545,123.57, having endured volatility due to wider market conditions. Thanks to stringent internal processes and disciplined resource management, VeChain had no issue navigating this period with ample resources on-hand.
As aways, in the name of openness and transparency, we are excited to deliver the details on our Q1 2025 expenditures, honouring the commitments made back in 2017.
Thank you for being an integral part of the VeChain community, joining our journey as we build a better future, together.
Sincerely,
VeChain Foundation
Balance Sheet
The balance sheet shows the total value of tokens held by VeChain, denominated in US Dollar value, and includes the value of BTC and ETH raised during ICO in 2017.
At the end of Q1 2025, the VeChain Foundation's total treasury value, including stablecoins and holdings of BTC, ETH, and VET, stood at $218,545,123.57. This represents a decrease from the $454,378,261.73 by 51%, as reported at the end of Q4 2024. The volatility is reflective of the broader cryptocurrency market conditions experienced during the quarter.
Comparing Q4 2024 with Q1 2025, asset prices were significantly impacted by market conditions: VET decreased by 48.16%, ETH fell by 46.19%, and BTC declined by 11.13%. Despite these market challenges, our strategic initiatives and operational execution continued without interruption, demonstrating the resilience of our financial model and long-term approach.
Expenses Sheet
The expenses sheet covers all spending categories and summarises the expenses incurred by the foundation through various activities, initiatives, developments, and engagements.
PR & Marketing: PR & Marketing investments support growth, advertising, brand positioning and more across traditional, agency, and KOL channels. These investments are key in helping VeChain maintain its leading role in the broader crypto market.
Legal & Finance: Q1 Legal & Financial expenses totalled $1,128,959 USD, covering compliance, regulatory, and strategic advisory services. This investment supported our continued MiCAR compliance operations and helped establish legal frameworks for partnerships developed during the period.
Eco-Ops: Eco-Ops pertain to the continued expansion of ecosystem operations and development. This expense covers outsourced technical services, specialized consulting engagements, and team compensation.
Tech-Ops: Tech-Ops expenditures relate to intensive development work spanning the Technology centre of the Foundation. It covers various internal teams pursuing multiple technical goals in parallel, from wallet to protocol, to infrastructure, tools and technologies.
Eco BD: Eco BD funds are support to the growth and expansion of the VeChain and VeBetter ecosystems, including strategic investments, onboarding new strategic partners, and supporting the overall expansion of the ecosystem.
A Quarter of Preparation and New Growth
2025 Q1 served a critical function this year – serving as a foundation-building quarter for many of the successes we’ve seen since, as well as those yet to be announced.
2025 Q1 also highlighted the importance of disciplined financial management and fiscal prudence. Our CFO team, led by David Smith, has continued to enhance its operational capabilities, and allowed us to navigate a turbulent quarter without having to compromise on our strategic priorities.
Continued investment in ecosystem development, strategic partnerships, and technical advancements during Q1 were proven prescient, baring fruit in later quarters as we march through 2025.
VeChain’s evolution and pursuit of its goal to deliver mass adoption of Web3 technology remains steadfast. With the unwavering support of VeFam and growth across the wider Web3 industry, we continue moving confidently toward our goal of delivering a valuable, impactful Web3 App platform that incentivizes users, and creates tangible impact and benefits to the world around us.
Onwards, we ride! Keep building.
About VeChain:
Founded in 2015, VeChain is a general-purpose, adoption-focused blockchain platform built to drive mass adoption for Web3, while rewarding positive social and environmental actions in the real-world. Its energy-efficient blockchain, VeChainThor, provides scalable, low-cost infrastructure for developers and businesses to build applications without requiring deep technical expertise. Having proven its model through global partnerships with UFC, BCG, and Walmart, and with over 2 million users engaging in VeBetter-powered apps, and 28 Million tokenized actions on-chain, VeChain is driving a retail-first adoption strategy, making blockchain accessible, impactful, and rewarding for everyday users. For grants, resources and more, visit vechain.org.
Disclaimer:
This crypto-asset marketing communication has not been reviewed or approved by any competent authority in any Member State of the European Union. The person seeking admission to trading of the crypto-asset is solely responsible for the content of this crypto-asset marketing communication. This marketing communication is issued by VeChain Foundation San Marino S.r.l..
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