Skip to main content
Uruguay Can

News from across crypto

Zcash vote would remove 50,000 ZEC from grants treasury

Zcash holders and community panels will vote on removing 50,000 ZEC from the grants treasury, while a draft redirects future funding to a locked development and legal-defense fund.

Uruguay Can Editorial

Zcash vote would remove 50,000 ZEC from grants treasury

Zcash Community Grants still receives an automatic share of newly issued coins; now holders and community panels will vote on ending that stream and removing 50,000 ZEC from its treasury. The draft ZIP merged into Zcash’s specifications repository on Nov. 11, and CoinDesk’s report puts the 50,000 ZEC at roughly $50 million. Polling is scheduled for Nov. 16–30.

What would happen to the 50,000 ZEC?

The draft would take the coins out of circulation and credit their value to the Network Sustainability Mechanism, which returns ZEC gradually through future mining rewards. It proposes that, after activation in a network upgrade, ZCG remove the coins within 30 days. The amount is about 55% of the 91,453 ZEC in the draft’s October treasury snapshot.

The sequence depends on more than a favorable poll:

  1. Coinholders and community panels vote from Nov. 16 through Nov. 30.
  2. Organizers assess whether the result shows “rough consensus.”
  3. If the proposal moves forward, a network upgrade would have to activate it before the 30-day removal deadline begins.

What changes for future grants funding?

At activation, ZCG would stop receiving its current 8% share of newly created ZEC. The same allocation would instead accrue to a new Future Dev and Legal Defense Fund lockbox until Zcash’s third halving, according to the draft. The lockbox would have no spending mechanism at first; a separate proposal would need to set rules for withdrawals.

ZCG would keep the rest of its treasury and continue awarding grants to developers, wallet builders and community projects. The separate 12% Coinholder-Controlled Fund would remain unchanged. That means the proposal shifts both a large part of the existing grants reserve and its automatic future income, while leaving current grants activity to draw on the remaining treasury.

Would the vote change Zcash immediately?

No. The poll is a step toward a possible protocol change, not activation itself. The draft still requires community support and a network upgrade, and no activation height has been set. Until those steps happen, the proposed treasury removal and funding change are not in effect.

Sources