- After a long decision-making process, Zcash Improvement Proposal 1014, which governs the further funding of Zcash, is final.
- Beginning in November, 80 percent of the mining reward will go to the Zcash miners, 7 percent to the Electric Coin Company, 5 percent to the Zcash Foundation, and 8 percent to third parties for “large grants”.
A lot of work has been done on how the financing of Zcash from November will be arranged. The concrete form of the improvement proposal, ZIP (Zcash Improvement Proposal) 1014, was not without controversy in the community. In particular, the rights and duties of the Major Grant Committee, which will be responsible for awarding larger grants to external developers, were at the center of the discussions. As the Electric Coin Company (ECC) announced yesterday, ZIP 1014 is now final.
1/3: ZIP 1014 is final. It establishes a #Zcash development fund to be spread across multiple teams and establishes a governance process beyond November 2020, when the proposal is implemented into NU4. https://t.co/xd4gOVW7fa$ZEC
— Electric Coin Company (@ElectricCoinCo) February 27, 2020
Starting in November, the mining reward will for four more years continue to go to the Zcash miners at 80 percent, as well as 7 percent to ECC, 5 percent to the Zcash Foundation and 8 percent to third parties for additional “major grants” for long-term major projects. Thus, the majority of development funds will go to external projects, as Nathan Wilcox, Technical Director of Zcash, also noted:
As a result, most of the funds will go to third parties. If you are curious about Zcash, now is a good time to get involved.
It was questionable until the very end how the major grants were distributed. Specifically, the question was whether the Zcash Foundation itself should be responsible for allocating the grants or whether a new Major Grant Review Committee should be established. A vote in January created a stalemate, and the Zcash Foundation announced that it would merge the two proposals.
As a result, the new ZIP 1014 stipulates that the awarding of major grants is subject to the approval of a five-member committee. The committee’s decisions are final and do not depend on the Zcash Foundation’s approval. However, the Zcash Foundation has a veto right if the committee’s decision violates ZF’s operating documents or U.S. law.
Another new feature is that the Zcash Foundation must appoint a committee and that the Zcash Foundation is authorized to change or modify the composition of the committee. In addition, the Major Grant Review Committee will be subject to a conflict of interest policy, according to which members may not decide on applications where there is a conflict of interest.
The Electric Coin Company declared the entire voting process, in which the entire Zcash community participated through various channels, a great success:
This is a huge milestone for Zcash, it furthers decentralization, and it’s the result of unprecedented community leadership and support