NEM foundation plans to restructure its mode of administration as well as reduce its staff strength as revealed in a recent press release of the foundation. The press release which was made by the new council of the foundation indicates the crypto winter market is the cause of its decision among others.
NEM Foundation’s Difficult Times and Crypto Winter Market Effect
The new council of NEM foundation stated that the structure of the organization in the past two years had been aimed at running a decentralized promotional organization in different regions. Also, in 2018, the foundation tested the concept of decentralized regional leadership which permits each regions freedom on how they operate in the promotion of NEM.
However, the result of the 2018 activities of the foundation was not so productive as noted by the council. The release stated that though the team consisted of a great talented people working hard in 2018, it was not aligned with the goal of the foundation. Also, it was noted that there was duplicity of efforts and inconsistent metric of success.
Further, it was mentioned that there was very little accountability for funds and questionable ROI which led to a burn rate of 9 million XEM per month. This made the existing structure of the organization unsuitable for its running and thus a need for a change. Also, the situation was further worsened by the crypto winter market which led to a huge loss of value of XEM.
NEM’s New Changes
NEM noted in the press release that the firm is in a tough spot like other crypto firms in the industry. Thus, there is a need to take necessary actions to pivot the lingering crypto market.
The firm stated that it is making changes from an operational point of view in the interest of the NEM users, employees, developers and partners. This includes a change of the structure as well as the mission to start afresh.
The structural changes feature the elimination of regional team and replacing them with a newly created product-focused team. Also, all foundation employees and contractors will now report to one of the seven product teams.
The foundation also noted that it would be reducing its promotional spending and due to having one month left in funding its new budget, it will not be able to support its current headcount, partnership and project for now as all will be placed on hold. This was noted as a necessary step to give the foundation positive productivity in 2019 even as the winter market persists.