Earlier this week, the foundation for the Open Application Network (OAN) released its quarterly transparency report. In Q4 ‘19, the Open Foundation spent ~$2.3 million from its fiat, bitcoin, and ether treasury, up 24% q/q. The increase came primarily from a jump in marketing expenses to support the project’s rebrand from Aion to The OAN. Ecosystem & Technical costs also increased due to the launch of The OAN’s new consensus mechanism, Unity, and shift in economic strategy (more on this below).
Native treasury spending came in just under ~$149,000 (based on the price at the close of Q4 ‘19), which increased more than 1,200% q/q due to a 2,006,900 AION payout (worth over $107,000 at the time) as part of The OAN’s Employee Incentives program. Spending in Q3 was also unusually low in part because AION price fell almost 63% from Apr. to the end of Sep. Combined with non-native treasury spending, yearly expenses totaled over $8.7 million.
Minus these expenses, the foundation holds over $18 million, about $6.8 million of which is in AION. Most of the remaining treasury is held in fiat, which the Open Foundation says it uses to fund “the majority of its operations.”
The foundation also notes that in Nov. ‘19, it sold 12,000,000 AION from its treasury to a strategic venture fund, a decision it claimed was not routine but served as part of a “broader objective to develop long-term strategic investors.” The Open Foundation revealed its purchased the AION from another token holder to facilitate the sale but did not disclose the details of either transaction.
This report covers some of the latest OAN developments as well, in particular, its upgrade to a new consensus algorithm called Unity, which combines elements of Proof of Work (PoW) and Proof of Stake (PoS).