This article was first published on Horizen
We find ourselves at a pivotal moment in this project’s short history where the economics of our system have been stressed too far. Our Treasury budget has collapsed to the point where, if we fail to take critical actions, we cannot achieve the key strategic objectives that give Horizen value. In coordination with deep team cuts and project scope reductions that have been ongoing for some time, we propose increasing the Treasury pool to 20% of block rewards.
It’s no surprise that the entire crypto industry has been having a terrible 2018, at least from the market side of things. Both total crypto market capitalization and ZEN market cap are down about 90% from the start of the year.
While the sky looks to be falling, we’ve made tremendous leaps forward in terms of infrastructure, usability, and laying the groundwork for real adoption across use cases. We also have an exciting pipeline of products, innovations, and partnerships for this coming quarter.
Reality is hard to escape, as badly as we want to close our eyes and pretend things are different. The magnitude and duration of the crash are worse than expected. The thing is, you generally don’t plan budgets and projects to the tail of an outcome distribution, even if you think it has a negative skew.
The last few months have been rough for the Horizen team as we’re on our fourth round of cuts. We’ve slashed contracts, events, sponsorships, all the low hanging fruit, then started getting into laying off team members. This is always the hardest thing for any organization, especially when you’ve spent so much time finding and maturing that talent.
In total, this last round of cuts drops expenses about 80%-90% of where we were at the beginning of the year, which is finally in ...
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