NEM Community Fund Update | Concluding the DAO

Dear Community,

I am posting this on behalf of the NEM Community Fund Committee.

The following letter is being sent to all community funded projects. They will also receive a secondary letter with more confidential details specific to their project.

The NEM Community Fund DAO (NCF) was established from unclaimed stakes, with purpose of expanding the NEM ecosystem, and benefiting NEM adopters / stakeholders.

From a total of 300 million XEM, 30 million XEM has been allocated across a total of 12 projects. Five of these have completed their funding allocations, and are no longer receiving funds from the NCF.

The majority of remaining projects are now more than a year old and at varying stages of progress.

However; due to low crypto prices, and the application of the NCF algorithm, most projects have already exceeded, or are close to exceeding the originally requested XEM amounts.

At today’s price of $0.05 USD, the requested fiat values of NCF projects equates to over 85 million XEM. With market price trends, these volumes are susceptible to rapid inflation as ever increasing volumes of XEM are issued to offset the low fiat value.

This has been a good prompt to pause and consider if, and how, NCF best serves the remaining projects.

After careful assessment of the facts, we have concluded with the following:

Instead of draining the limited XEM reserves, we aim to conclude NCF processes at a cost of no greater than 5 million XEM. This 5 million XEM will be issued in a manner as effectively as possible to assist current projects in transitioning from NCF to external funding sources.

NEM Ventures is now operational with better processes and support than NCF can provide, and thus a preferable vehicle for NEM project support.

The existing NCF committee is now reviewing the remaining projects to ensure they are viable businesses aligned with the NEM vision.

The NCF Committee issues the following recommendations:

  1. Any remaining projects that have not proven they are a solid NEM fit, or where there are serious concerns about their viability to make it to market, will not receive any further NCF funding.

  2. Any project that has progressed to a point where it is now viable and ready for external investment will be asked to cease, or heavily reduce, any further NCF funding, particularly if what they have already received is above the original XEM budget.

  3. We will work with remaining projects to establish what further funding is genuinely required over the next 3 months as we assist them in transition to other funding sources.

We intend to wrap up the NCF processes and abolish committee by June 30th, 2019.


Japanese translation:


私はこれをNEM Community Fund Committeeに代わって投稿しています。










NEM Venturesは現在、NCFが提供できるよりも優れたプロセスとサポートで運用されているため、NEMプロジェクトのサポートには好ましい手段です。








Deeply disappointing. This is actually a betrayal for those of us who have sunk significant time and resources into building on NEM. Couple this with the handling of these Milestone payouts and the basic fact that NEM seems to have not realised the volatility in the crypto market when that “algorithm” was invented meant that a drop in the prices would have caused them to have to pay out more?

DAN, I don’t criticize you.
But, looking at this now, I think…


Digital2Go has a fully operational customer portal with analytics and dashboarding for our current deployments, the system has been under constant development for 2+ years, the next stage of development is to build on our offerings to allow for ownership of personal location data and integrate the entire system with the NEM blockchain.

Phase 1 - 3 months ←
Development of the SDK to stream data to IoT endpoints and record transactions on the blockchain, Android and iOS - SDKs are to be open sourced and made publicly available.

Phase 2 - 3 months ←
Development of the LocationCore app that integrates this SDK. This app will be the primary offering while partnerships are built. It will be available in app stores where users can download and start earning immediately after release.



Seeding (300K XEM)

  • Recruitment of developers for LocationCore project
    Full time, 6 Months (2 x Top Mobile, 1 x React Native, 1 x Senior Dev w/ Blockchain Experience)
  • LocationCore App Mockup Completed for launch on community
  • Press release written for Blockchain launch

Milestone 1 (200K XEM)

  • Website created for LocationCore describing functionality and benefits
  • Completed development of the iOS SDK
  • Integration of SDK with NEM Public Blockchain
  • Create a marketing and PR plan to launch the world’s first personal location data democratisation solution on the NEM blockchain

Milestone 2 (250K XEM)

  • Completed development of the Android SDK
  • Integration of SDK with NEM Public Blockchain
  • Create streaming data infrastructure (Kafka / AWS Kinesis) and link to IoT platform
  • Create blockchain integration at point of data creation to accurately record location packets sent by devices
  • Create pipeline for ingestion of data to Digital2Go analytics platform Create pipeline for ingestion of data to Digital2Go analytics platform (AWS Redshift, Matillion ETL and ML Scripts to cleanse and enrich extra data incoming from LocationCore SDK’s)

This is the January 2018 description.
Now it is 2019. It will be Q2 soon.
Payment has been made twice. A total of 500,000 XEM.
The milestone is “1”.

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Thanks @GodTanu - Can you move this to our thread? LocationCore: Democratising personal user location data through the NEM blockchain

Will sort out a response tomorrow as I have only just seen this and its late here!

Please see response here!

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As the NCF platform has basically been moved over to NEM Ventures, I see this as a logical move with more oversight, more governance, and makes the ecosystem sustainable.
Of course it could stir up some negative reactions from projects, but I think with the climate we are in it’s the move that makes most sense.


To add some clarity: NCF is and was completely independent from any other NEM entities, including NEM Ventures. There was no outside influence on our decisions.

However, given the current status of NCF and the fact that NEM Ventures does exist, the most logical path forward is to refer projects to them.

Since we respect the privacy and confidential details of each project, it is near impossible to respond to any public complaints without breaching that trust.
Therefor, we will continue to refrain from doing so.

Thanks for the support!


Yes this as well. Foundation, NCF, and Ventures are all separate entities. Thanks for clarification and for your commitment to keeping confidentiality.

I don’t recall any discussion about this proposal at all. Did the NCF committee make this decision based on their own internal discussions without input from the community? Frankly, this is a really bad look for NEM, as it appears the approved projects are basically being told they are shit out of luck, with no warning, and not even an attempt to help them in anyway carry on with the endeavor they wouldn’t have started without the support of the community fund.