Zcash co-founder Sean Bowe has proposed ending the automatic allocation of 8% of newly created ZEC to Zcash Community Grants, with the funds instead placed in a reserve for future mining rewards.
The proposal would require a change to Zcash’s network rules. It would not affect money already received by the grants committee, which would retain those funds.
Bowe estimates that Zcash Community Grants has about $125 million available after accounting for existing commitments. He said that reserve could support the programme’s spending for years, even if the price of ZEC were to fall substantially.
Under the current arrangement, 8% of newly issued ZEC is directed automatically to the grants programme. Bowe’s plan would end that ongoing allocation and redirect the same share to a reserve intended to support future miners.
The proposal comes as the grants programme faces scrutiny over funding for outreach at an adult-industry convention. However, Bowe’s rationale is centred on the size of the programme’s existing reserves and the continued flow of new funds, rather than solely on that grant.
If approved, the change would alter how newly created ZEC is distributed while leaving the committee’s existing holdings and commitments in place. The reserve would be intended to provide funding for mining rewards in the future.
