"The NEM Foundation You Knew Before Is Gone," What Is Next

Published on by Cointele | Published on

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As part of the closing statements in an open announcement to the NEM community, the NEM Secretarial Office, which represents the voice of the NEM Foundation's executive committee and council, said in "One final message for all" that the NEM Foundation community members knew before "Is gone."

NEM Foundation backgroundThe NEM foundation was started in 2017, two years after the launch of NEM, an out-of-the-box, enterprise-grade blockchain platform.

NEM co-founder Lon Wong was the founding president of the NEM Foundation until his resignation in early April 2018.Since April 2018, Kristof Van de Reck served as the interim president of the NEM Foundation until Alexandra Tinsman was voted in as president on Dec. 14, along with newly elected members of the executive committee and council.

Only eligible NEM members can vote in NEM council elections.

Although Tinsman repeatedly stated that the NEM Foundation operates as a separate entity to the NEM blockchain platform, the actions of the NEM Foundation have an undeniable impact on the price of XEM, as pointed out by community member Dan V."I understand that the Foundation is not NEM, however it seems to have an uncanny ability to cripple most parts of it - whether that is through infighting, unprofessional behaviour by representatives of the council or just lack of direction for NEM as a whole."

How did the NEM Foundation get into such deep financial difficulty?The announcement touched upon some surface level reasons that led to the foundation's current financial problems, including misaligned goals from key staff members, efforts being duplicated, inconsistent success metrics, little accountability for funds and a questionable return on investments.

Jelin1984 accused ex-NEM Foundation President and NEM co-founder Lon Wong of taking some of the funds to develop another crypto project called ProximaX. The accusation is complicated by the fact that NEM and ProximaX continue to have a very close working relationship.

"During my term as NEM Foundation President, I, along with the rest of the NEM Foundation Council, managed our funds prudently. We requested for only 50% of the fund that was approved to be spent for 2017.".

"No one is accusing Lon of taking funds. Please don't spread this misinformation. Lon Wong was a co-founder and the first President of the NEM Foundation which started in early 2017, two years after the launch of NEM. Lon left the NEM Foundation in April of 2018. Since that time he has been focusing on a project called ProximaX, in which is he the President. The NEM Foundation wishes Lon and ProximaX success in the future."

NEM Foundation President Alexandra Tinsman has confirmed that a full report of the restructure and funds being requested is in its final stages of preparation and will be released to the community as soon as the core developers and legal teams have had time to review the proposal and audits.