Cryptocurrency Winter Forces the NEM Foundation to Restructure Mode of Operation
NEM Foundation, the team in charge of the NEM (XEM) blockchain project, has announced a significant change to its mode of operation due to the recent downturn in the cryptocurrency markets, according to an official announcement by the team on January 31, 2019.
NEM Foundation Restructured to Cut down Cost of Operation
As part of measures to overcome the ongoing crypto winter and enable the NEM project to remain sustainable for years to come, the NEM Foundation has formulated a new way of carrying out its operations.
According to the Foundation, when a new council became functional on January 1, 2019, the team reviewed all the activities of the NEM project for the past year and a lot of anomalies were discovered in the system. These observations rendered it pertinent for the entire project to be restructured in a manner that would cut costs, foster accountability, productivity, and adoption.
“We saw efforts being duplicated, and inconsistent metrics of success. We saw very little accountability for funds and questionable ROI, leading to a burn rate of 9 million XEM per month,” the Foundation wrote.
The team noted that while the existing model may have remained sustainable in a bull market, it’s absolutely impossible for the project to survive the ongoing crypto bloodbath if it keeps working that way, as the price of XEM has crashed drastically since 2017 just like the price of bitcoin.
“We are in a tough spot like many others in the cryptospace. It is our duty to act quickly to ensure the longevity of the NEM Foundation ecosystem and development.”
A New Dawn for NEM
In order to come up with an operational model that will be to the good of NEM users, employees, developers, and partners, the Foundation says it has worked tirelessly across seven time zones, meeting several times weekly since December 2018.
Now, the NEM Foundation has transformed itself from a promotional-focused organization to a product-centric project.
Against that backdrop, the team says there will no longer be regional teams; instead, there are now product-focused teams, and as such, all employees and contractors will henceforth report to one of its seven product teams. These groupings include finance, technology, business development, revenue, operations marketing, and product management.
In the same vein, each team will have only one team lead, and they will be responsible for “reporting metrics and delivering ROI directly to the council and community to maintain transparency and accountability.”
The NEM Foundation firmly believes the new model will push it further ahead in the blockchain industry, as its team members will now be more focused on goals, while its partnership and business development efforts will become fully transparent and ROI reporting will also become clearer.
As reported by BTCManager in January 2018, half a billion dollar worth of NEM (XEM) altcoin was stolen from Coincheck exchange, an event that has gone into the history books as the largest crypto heist in the ten-year history of the cryptosphere.