CoinDesk
Zcash Community Grants has withdrawn a proposal to redirect about 98,000 ZEC toward future mining rewards, less than a week after introducing it. The committee said funding changes should follow Zcash’s usual governance process. Its automatic allocation of 8% of newly created ZEC, about 144 coins a day, remains in place because no alternative proposal has been adopted.
Why it matters
The dispute is about how Zcash’s newly issued coins should be allocated and who should decide. ZCG’s five-member committee approves grants for developers and community projects without a separate coinholder vote on each award. Its treasury has grown large enough to fund years of work, prompting questions from developers and ZEC holders about the ongoing inflows, spending decisions and accountability.
The debate intensified after a ZCG-funded outreach project promoted private payments at an adult-industry convention in New Jersey. Critics challenged the committee’s spending and oversight. Supporters argued that people who face banking restrictions, including sex workers, have a need for financial privacy.
Market impact
ZCG’s withdrawn plan would have moved 36,200 ZEC from its roughly 91,500-ZEC treasury into the Network Sustainability Mechanism, which tops up miners’ block rewards over time. It also would have reduced the committee’s expected income through the 2028 halving from about 109,000 ZEC to 47,000, with funding tapering further toward 2032. Redirecting coins to miners would leave less available for development.
Other proposals remain under discussion. Zcash co-founder Sean Bowe proposed ending ZCG’s automatic funding, then joined Zcash founder Zooko Wilcox in a draft to send 50,000 ZEC to the reserve and direct future funding to a development and legal-defense fund. Developer Daira-Emma Hopwood proposed retaining the 8% allocation while refocusing grants on increasing ZEC use. Until governance changes the rules, ZCG continues receiving about 144 ZEC daily.
Frequently asked questions
-
Why did Zcash Community Grants withdraw its funding proposal?
ZCG said funding changes should follow Zcash’s usual governance process. The proposal had drawn community criticism over the committee’s funding and spending.
-
How much newly created ZEC does the grants committee receive?
ZCG receives 8% of newly created ZEC, about 144 coins a day. That automatic allocation remains unchanged until governance changes the rules.
-
What would the withdrawn plan have done with ZCG’s treasury?
It would have moved 36,200 ZEC from the committee’s roughly 91,500-ZEC treasury into the Network Sustainability Mechanism, which tops up miners’ block rewards.
-
What other funding changes have been proposed for ZCG?
Proposals include ending automatic funding, sending ZEC to a reserve and a development and legal-defense fund, or keeping the 8% allocation while refocusing grants on ZEC adoption.
-
Have any proposals to change ZCG funding been adopted?
No. ZCG continues receiving about 144 ZEC a day until a network upgrade changes the funding rules.
Crypto News
Lookonchain
WuBlockchain
CryptoSlate
TheBlock
Glassnode