Tyler Winklevoss has backed calls to end the 8% block reward allocation to Zcash Community Grants (ZCG) as developers debate its accumulated funding. His support follows Zcash co-founder Sean Bowe’s proposal to redirect that allocation to the Network Sustainability Mechanism (NSM) while preserving ZCG’s existing treasury.
Bowe said the program currently holds more than $125 million and would receive millions more before payments stopped.
Bowe’s draft Zcash Improvement Proposal focuses on ending future payments to ZCG. He argued that the program was never designed to handle its current funding level. The draft would send that 8% share to the NSM while leaving the separate 12% coinholder allocation in place. ZCG would retain control of the funds it already holds.
He said the grants program spent $5.76 million over five years on their development, despite coinholders voting 98.6% against the assets earlier this year. Desalle added that ZCG approved another $455,000 for ZSAs in June, questioning the program’s accountability.
Desalle has also proposed ending ZCG at Network Upgrade 8. His approach would stop new grant approvals, while Bowe’s draft would preserve the program’s existing funds.
He said that stream accumulates approximately 216 ZEC per day until the next halving. Swihart proposed redirecting both funding streams to the Network Sustainability Mechanism (NSM).
Under his proposal, ZCG would honor all approved grants before transferring its remaining funds to the NSM.
(adsbygoogle = window.adsbygoogle || []).push({});Swihart said ZCG funding had supported ideas that needed incubation and helped balance governance. He described coinholder grants as a bridge away from direct funding when resources were scarce, adding that the arrangement had served its purpose.
Swihart also disclosed that ZODL recently received a retroactive coinholder grant for core protocol work and would apply for future grants if the fund continued operating. He argued that retiring the entire fund would eliminate that potential source of future funding.
Bowe challenged the proposal to link the two funding streams, calling it a “false dichotomy.” Swihart responded that differing views and debate over the trade-offs were acceptable.
