CoinDesk
Zcash co-founder Sean Bowe has proposed ending the automatic allocation of 8% of newly created ZEC to Zcash Community Grants and redirecting that issuance to a reserve for future mining rewards. The committee would keep its existing assets and continue awarding grants from them. Bowe estimates the treasury has about $125 million available after outstanding commitments, based on an illustrative ZEC price of $1,300.
Why it matters
The proposal would stop a funding stream that delivers roughly 144 ZEC a day, worth about $68 million a year at the figures cited in the draft. Zcash Community Grants would still have its current reserves, while the redirected funds would enter the Network Sustainability Mechanism for the rest of the allocation's existing term.
Bowe argues that the program was not designed to manage its current level of funding. The Financial Privacy Foundation, which administers the funds, reported just over $1.5 million in program expenses in the first quarter. Annualized, that is about $6 million, compared with the much larger ongoing inflow.
Market impact
The change would require a revision to Zcash's network rules and has no activation date. Until a change takes effect, the grants allocation continues. ZCG's dashboard showed about 91,453 ZEC and $8.8 million, with $2.4 million committed to grantees, while Bowe valued the remaining balance at $125.3 million using the $1,300 ZEC assumption.
The proposal preserves a separate 12% allocation whose grants are subject to quarterly holder votes. It arrives amid scrutiny of a ZCG-funded outreach program, but Bowe's draft bases the change on the size of the treasury and continuing inflows rather than citing that grant directly.
Frequently asked questions
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What does Sean Bowe propose changing in Zcash funding?
Bowe proposes ending the automatic allocation of 8% of newly created ZEC to Zcash Community Grants and redirecting it to a reserve for future mining rewards.
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How large is the Zcash Community Grants treasury?
Bowe estimates the treasury has about $125 million available after outstanding commitments, using an illustrative ZEC price of $1,300.
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Would Zcash Community Grants lose its existing funds?
No. The committee would keep its existing assets and continue awarding grants from them if the proposal takes effect.
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How much new funding does Zcash Community Grants receive?
The program receives about 144 ZEC a day, valued at roughly $68 million a year at the figures cited in the proposal.
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Does the proposal take effect immediately?
No. The change would require a revision to Zcash's network rules, and the draft does not set an activation date. The 8% allocation continues until then.
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