Zcash Community Grants has withdrawn its week-long offer to hand over some of its cash and future funding to miners, leaving rival projects open for its 8% share.
Zcash Community Grants (ZCG), the five-member committee that funds the development of Zcash, abandoned its plan to redirect approximately 98,000 ZEC to future mining rewards less than a week later stating “we have decided not to move forward with this proposal”.
What’s the scoop?
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The plan: ZCG had offered move around 36,200 ZEC from its hoard of around 91,500 ZEC into the network’s Sustainability Mechanism, a reserve that pays miners slowly over decades, and take less than half of the new ZEC owed to it by 2028, cutting it in half.
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The backlash: ZCG gets 8% of all new ZEC issued, or about 144 coins per day, and the ZEC rally has made it what Zcash founder Zooko calls a “crisis of governance”. Reviews a ZCG-funded campaign at an adult industry convention, and Josh Swihart of Zcash Labs argued “It’s time to end the Zcash Dev Fund.”
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What’s next: compromise by Sean Bowe and Zooko as the main plan: it would terminate ZCG’s 8% share, place it in a locked fund for future development and legal defense, and require ZCG to donate 50,000 ZEC to the miners’ reserve. The entire development fund expires in 2028. ZEC is up ~11% in the last 24 hours.
David is a writer/analyst at Bankless. Before joining Bankless, he worked for a series of early-stage crypto startups and with grants from the Ethereum, Solana and Urbit foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
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