Zcash co-founder Sean Bowe has proposed ending the automatic allocation of 8% of newly issued ZEC to the Zcash Community Grants (ZCG) program, redirecting that share to a future mining reward reserve. The proposal argues that ZCG’s assets have reached approximately $125 million, a scale the program was never designed to manage, and that continuing to accumulate funds in separate custody arrangements increases risk.
Under current network rules, ZCG receives about 144 ZEC per day, valued at roughly $68 million annually at a price of $1,300 per ZEC. A dashboard shows ZCG holds approximately 91,453 ZEC and $8.8 million in cash, with only $2.4 million committed to grantees. The Financial Privacy Foundation, which manages ZCG funds, spent just over $1.5 million on projects in the first quarter. Bowe stated existing reserves are sufficient to cover years of spending.
The proposal does not address the recently controversial ZECsy outreach grant program and lacks an effective date. It requires changes to Zcash network rules to take effect; until then, the daily ZEC allocation continues unchanged.
Zcash Co-Founder Proposes Ending Automatic Community Grants Funding Amid $125M Asset Pile
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