Zcash’s for-profit developer Electronic Coin Company (ECC) released its most recent transparency report on Aug. 30, showing that it had suffered financial losses while being able to forego layoffs.
ECC Q1 Earnings Report
ECC, which supports the development of the privacy-oriented cryptocurrency zcash, generated an average monthly deficit of 30% throughout the first quarter of the year.
According to the report, the company made $449,000 in monthly revenue with expenses averaging $635,000. The report claims that despite generating a deficit, EEC spent less per month than during the previous period in response to “ongoing market pressure,” which included “curtailing or deferring certain activities.”
More significantly, the report says that share dilution was applied to Founders Reward participants in June 2019, in an effort to support the continued “financial sustainability of the company.” For every Zcash block mined, 2.5 ZEC of the 12.5 ZEC payout goes the “Founders Reward,” which is distributed to the founding participants and ECC employees.
Of the $635,000 generated in monthly expenses, $110k was spent on employee salaries. The report also claims that ECC’s share of ZEC obtained from mining rewards was devoted to “R&D, engineering, global adoption efforts, audits, trademark protections and regulatory relations.”
ECC ended the quarter with $5.2 million held in USD and Zcash and claims to currently hold $6.4 million as of the publishing date for the report.
Zooko Wilcox, CEO of EEC and a recipient of the Founders Reward, published a letter in July applauding the company for navigating the bear market for a cryptocurrency throughout 2018 and the first part of this year without having to layoff employees.
