Quarterly Credit Report: Fourth Quarter 2018

Sheet

Summary

This quarter we moved 118,635 operational and 240,000 institutional credits from cold storage. We spent 1,084,796 total community credits on line items detailed below. 118,635 operational credits were used for the LBRY employee LBC purchase program. 100,000 institutional credits were spent from the institutional fund as a second payment of a new media partnership. We anticipate comparable or larger total outlays in Q1 2019. Operational spending may increase, but not significantly. Community spending is likely to be comparable or higher. We will continue to incentivize new users and other beneficial behavior, which is likely to involve 1,000,000+ LBC from our community fund. Institutional spending is expected to be less than 1,000,000 LBC.

Overview By Fund

Community Fund

1,084,796 credits were spent from the community fund, in the following areas:

Category	Amount
Bounties	176,550
User Engagement	210,000
Community Engagement	177,000
Publishing	16,410
Acquisition	189,043
Testing	4,241
LBRY.fund	311,552

As reliability and interest has been increasing, we anticipate continuing to reward new users, community contributions, and other beneficial activity. This is likely to represent no more than 1-2 million LBC.

Operational Fund

LBRY sold no LBC on the open market
LBRY issued 118,635 LBC to employees

LBRY does not anticipate moving credits to market this quarter due to both market conditions and our favorable cash position. However, should market conditions or our needs change, we reserve the right to move credits to market as needed.

Institutional Fund

100,000 LBC re-issued for a 3Q transaction sent from the wrong fund
140,000 LBC issued for our media partnership with Anti-Media