Dear Community,

We are excited to present the latest CPChain Foundation Financial Executive Report. This financial report covers April 2019 through Aug 2019. In this period, CPChain’s formal mainnet officially launched online. The CPChain Industry Node program was successfully released and since then we have welcomed a bunch of our industry node partners publicly. The project SPARK helped 8.7% of the total supply of CPC tokens to swap their token easily with bonus. It has been a fruitful 4-month period for the team as well as for the community.

we sincerely welcome our community to hold us to the commitment of transparency, the thorough monitoring, and utilization of assets, and the R&D process of all aspects within the CPChain Foundation.

The report structure is as follows:

1. CPC Supply Overview

2. CPChain Foundation Expenditure (use of proceeds)

3. Notes

4. Buyback Update

5. Summary 

 

1. CPC Supply Overview

The total supply of CPC is 1,000,000,000. By the end of Aug 15th, 2019, the circulation supply of CPC is 376,765,852, which accounts for 37.67% of the total supply. The holders are distributed globally.

Category

Description

Apr.16th 2019 Balance

Aug.15th 2019 Balance

Ratio by Aug. 15th 2019

Note

Circulating

Supply

Individual and Institutional Investors

376,765,820

349,526,532

34.95%

i

Non- Circulating
Supply

held by the foundation

Team

250,000,000

200,000,000

20.00%

ii

Node Reward Pool
including both ENode and RNode

200,000,000

200,000,000

20.00%

iii

Tech Community in Schedule

100,000,000

120,000,000

12.00%

iv

Community Operations
&
Business Development

73,234,148

130,473,468

13.05%

v

 

2. CPChain Foundation Expenditure (use of proceeds)

We summarized below the USD value of the expenditure in ETH for the reporting period. For the spending in ETH, the USD value was booked based on the rate when the transaction occurred. In many situations, our service providers and partners prefer to receive CPC as direct payment or investment compared to using fiat or ETH. Therefore, the total expenditure for operation, technological and business development comprises a combination of direct CPC payment and use of ETH depending on the associated parties’ preference.

The expenditure of this period increased as we started to work with some service providers to seek listing on some of the top crypto exchanges in the fields. We hope that in the second half of 2019, we can finally bring some exciting news onto the table for the community.

Category

ETH Amount

USD Value

Percentage

Note

Daily Operations

616

132,950

22.53%

v

R&D

1483

320,072

54.24%

v

Business Development

169

36,475

6.18%

v

Exchange Application

466

100,576

17.05%

v

Summary

2734

590,073

100%

 

 

3. Notes

i) Individual and Institutional Investors
The current CPC holders are mainly domestic and foreign individual investors and investment institutions. Since the CPChain mainnet has been online since 6/30/2019. The project spark has led to 8.5% of the total supply (over 85 million cpc) transferring from ERC-20 format to mainnet format. This portion of tokens was locked for 30 days and have been sent back to the SPARK participants. Some of the tokens have already been deposited by the holders to joined the RNode process. We will reveal an overall summary of soft lock-ups (RNodes & Industry Nodes) in our next Financial Report in that there will be more statics by then.

ii) Team
During the past 4 months, 4 full-time employees joined us onshore while it was also at the same time period that we released our latest Whitepaper 2.0, in which we revealed the change in token structure. After internal discussion and voting, the team decided to reduce the share of Team Token from 25% to 20% so that there will be more tokens flows to the community.   For that 20% of team tokens, we will distribute them gradually from the 2nd half of 2019, the HR team has been continuously optimizing the performance review and incentive program to support the long term success of the project.

Same as previous periods, the executive team will continue locking up 100% of their rewards gained in this period.

iii) Node Reward Pool
As known to all, the foundation has a five-year token distribution plan for both Economy nodes and RNodes. The foundation reserved 20% of the total supply for node reward which will be sufficient enough to cover all the expenses to be generated in the future.  Since there have been some of the RNodes already proposing blocks on chain, a small part of the tokens in the pool have been distributed. We will reveal more numbers in the December report since there will be more data by then.

iv) Tech Community in Schedule
The decision of creating the tech community of CPChain has been made since the end of last year upon Alpha Mainnet launch. And as scheduled, we will fully transfer the idea into reality in the 4th quarter of 2019 in terms of DApp incubators, official hackathons, Ecosystem bounties, Forum setup and so on. The bug bounty program has been announced for months and we will announce the rewards in the near future alongside the announcement of several amazing community-oriented tech tools. The foundation reserved this portion of CPC with the vision of encouraging more tech contribution.

v) R&D, Operations, Business Development.
The budget and expenditure of this portion consist of two parts, CPC and ETH. Among them,  the foundation mainly uses the token as an incentive for the community and the Business Development affairs. We believe that encouraging the community with CPC will no doubt help strengthen the faith of the project among our followers and partners. R&D expenditure is mainly in terms of salaries, industrial and academic reports, devices, etc. We are proud to say that we have quite a lot of highlighted moments in the past 4 months in R&D, Community & Business Development.


From the R&D perspective, we embraced the formal mainnet launch and WP 2.0.  Mainnet is on and has been stabilized. Updates about tech adoption, consensus, team, and community governance have been presented in the latest WP. 2.0.

In addition, the CPChain wallet is almost done. It is under the final internal test. The CPC wallet will present the users with transactions, economy node rewards, and community functionality. Those who missed the project SPARK can also finish the token swap directly through CPC wallet.

 

From the Business Development perspective, the foundation introduced the CPChain Industry Node Partnership Program under the vision to unite industrial friends into the ecosystem. By the end of Aug 14th, 2019, we have already announced 18 industry nodes whose business covers a variety of areas in terms of investment, professional mining pools, blockchain projects, community governance, traditional Internet of Things,  automotive industry and so on. 

At present, the CPChain industry node family members include Beijing Huahong, Futuremove, TokenInsight Staking Service, Keystore, HashQuark, Node Pacific, Cobo and so on.

Announced Industry NodesApril, 2019 – August, 2019)

  • Apr. 28thMorpheus Lab
  • Jun. 4th Shanghai Jiaotong University Distributed Intelligent System Laboratory
  • Jun. 11thKey Store
  • Jun. 12thBeijing University of Posts and Telecommunication Information Security Center
  • Jun. 14thNational Super Computing Center Changsha Center
  • Jun. 18thNode Pacific
  • Jun. 19thBixiaobai
  • Jun. 26thHashQuark
  • Jun. 27thVNT Chain
  • Jun. 28thChainlink
  • Jun. 29thState Key Laboratory of Cognitive Neuroscience and Learning of Beijing Normal University
  • July 1st Futuremove
  • July 2nd, The Institute of Automobile Enterprise Management and Innovation of the North China University of Technology
  • July 3rdHyperion Decentralized Infrastructures Group
  • July 4th Bitrun
  • July 5th FIOT-Lab
  • July 9th Electric Alliance of Smart Travel Sharing (EASTS)
  • July 10th Shanghai CD Intelligent Traffic Technical Consulting Co., Ltd.
  • July 18thBeijing Huahong
  • July 23rd Cobo Wallet
  • Aug 14th TokenInsight Staking Service
     

From the community perspective, efforts have been made.
Following are some highlights from the community and marketing events (Apr 2019 — Aug 2019)

  • Apr. 18th The first stop of MOBI (Mobility Open Blockchain Initiative) global colloquium was held in Shanghai. CPChain is the co-organizer.
  • Apr 19th- Apr 21st 9102 BITRUN Hackathon was held successfully. The event is sponsored by CPChain
  • Apr.30th- Jul. 6th CPChain RNode Public Test
  • May 17th CPChain Bug Bounty Release. First bunches of contributors have been selected from the pool of candidates and will be announced shortly;
  • May 29th CPChain Industry Node Partnership Program Release
  • Jun 21st CPChain Ecosystem Node details release
  • Jun 30th CPChain Spark Program Release
  • July 26th CPChain Whitepaper 2.0 translation bounty release
     

From the perspective of Exchange listing, we have been listed on 4 new exchanges in this reporting period. 

  • Cointiger
  • Biki
  • ZG.com
  • LAtoken
     

4. Buyback Program Update

On August 29th, 2018, CPChain announced the buyback plan that 50 million CPCs would be bought back from major trading platforms within a one-year period. At present, the CPChain Foundation has repurchased about 46 million CPCs. The number of tokens bought back has exceeded 12.8 % of the current total circulating supply, accounting for over 4.6% of the total supply. The buyback target is basically completed, and the CPC bought back will be used for CPChain community incentive to promote the global ecological expansion of CPChain.

 

5. Summary

Overall, the CPChain Foundation's financial situation from Apr to Aug 2019 was relatively stable and healthy. The Foundation holds sufficient funds for medium- and long-term development of the project, part of which have been transformed into stable coins so as to avoid the uncertainty of the open market.  The target of the mainnet launch was accomplished in the reporting period. To move forward, the foundation will accelerate the mapping of the cpc tokens, the launch the CPC wallet, the construction of CPChain community and the overall ecosystem.

The second half of 2019 will be crucial for the Project. Dear community, stay with us and we will continue to work hard, aiming at presenting our community some real stuff in the near future.

So stay tuned and see you next time!

CPChain, towards the trusted future!

 

 

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