Zcash grants committee drops plan to redirect treasury to mining rewards

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Zcash treasury plan dropped

Highlights

Zcash Community Grants withdrew its proposal to redirect treasury to mining rewards after criticism over continued 144 ZEC daily inflows and spending transparency.
The withdrawn plan would have transferred 36,200 ZEC from ZCG's 91,500-ZEC treasury to the Network Sustainability Mechanism and halved future ZCG income by 2028 halving.
ZCG, collecting 144 ZEC daily, faces unresolved long-term funding as rival proposals by Sean Bowe and Zooko Wilcox remain unadopted and governance debate continues.

Funding proposal withdrawn after backlash

As reported by CoinDesk, Zcash Community Grants said Tuesday it is no longer pursuing the proposal it floated on Oct. 29 after criticism over how much money continues to flow into the program. The committee says future funding decisions should go through Zcash’s standard governance process.

ZCG’s five-member panel approves grants for developers and community projects without a coinholder vote on each award. It receives 8% of all newly created ZEC, or about 144 coins a day, and its treasury has expanded enough to finance years of work, prompting developers and token holders to question why inflows continue at the current rate.

The debate intensifies after a ZCG-funded outreach project, ZECsy, promotes private payments at an adult-industry convention in New Jersey in late October. Critics question the committee’s spending and accountability, while supporters argue that sex workers, who often face banking restrictions, are among the groups most likely to benefit from financial privacy.

Governance fight keeps broader funding changes in play

The withdrawn plan would have moved 36,200 ZEC from ZCG’s roughly 91,500-ZEC treasury into the Network Sustainability Mechanism, a reserve designed to supplement miners’ block rewards over time. It also would have reduced ZCG’s expected income through the 2028 halving from about 109,000 ZEC to 47,000, before tapering further toward 2032.

Zcash co-founder Sean Bowe first proposes ending ZCG’s automatic funding altogether. He then joins Zcash founder Zooko Wilcox on a separate draft that would require ZCG to send 50,000 ZEC to the reserve and redirect future funding into a new development and legal-defense fund.

None of the competing proposals has been adopted. Until a network upgrade changes the rules, ZCG continues to collect about 144 ZEC a day, leaving the network’s long-term funding structure unresolved.

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