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- The Zcash Foundation has published a statement regarding the vote on the further funding of the ZEC blockchain.
- According to the results, ZIP 1012 will be introduced with increased accountability through a Grant Review Committee.
Already last Friday, the Electric Coin Company (ECC) published the results of the vote about the decision on the further funding of the development of Zcash, as CNF reported. A large majority of participants voted that the ECC and Zcash Foundation should continue to be funded through the block reward and be responsible for the continued development and promotion of the Zcash ecosystem. The current scheme will expire after 4 years, in November 2020.
As the Zcash Foundation (ZF) states, the community has made a strong case for a development fund. This fund will not only finance the ECC and ZF, but will also provide substantial financial support to third-party developers, leading to a broader participation of the development community. However, the exact implementation of the community-based decision is unclear, as a leading proposal is too contradictory to the other two.
Overview of the best ZIPs
The ZIP 1013 provides for an allocation of 20% of the new ZEC emissions for development activities until the second Halving (expected around October 2024). The allocation is kept very simple, 10% to the ECC and 10% to the Zcash Foundation. The proposal does not add new conditions or legal formalities for the provision of funding.
ZIP 1012 proposes a structure for a Zcash Development Fund, which will be introduced with Network Upgrade 4 (NU4) and will run for 4 years. The fund, which amounts to 20% of the block rewards, provides for a distribution of 35% for the Electric Coin Company, 25% for the Zcash Foundation (for internal work and scholarships) and 40% for additional for long-term major projects.
The third, key proposal, ZIP 1010, suggests a four-year development fund for the 20% block rewards, to be disbursed to a trust controlled by both the Electric Coin Company (ECC) and the Zcash Foundation, but with strict controls on how the funds are distributed. The aim is to extend the governance of funds to more groups than the ECC and ZF.
The further roadmap for Zcash
As the Zcash Foundation writes, all ZIPs want to promote “more responsible and decentralized” Zcash development, with a strong emphasis on “accountability and transparency”. As a result, ZF has decided to build on the ZIP 1012, which received the most support in the community. However, elements from ZIP 1010 will also be included:
With these results and our own guidance, the Foundation can support ZIP 1012 for NU4, but would like to see elements from ZIP 1010 — which also polled highly and is more thematically compatible with ZIP 1012 — incorporated before acceptance. The Foundation believes these elements from ZIP 1010 could lead to a greatly improved, better specified, and well-rounded ZIP 1012.
To meet the stricter accountability requirements of ZIP 1010, a Grant Review Committee will be established. This committee will decide on the disbursement of major grants. The Zcash Foundation plans to conduct a process for the committee’s board elections, as was last done with the Community Governance Panel in 2018. Commenting on the further timetable, the Zcash Foundation said:
We will incorporate these elements into ZIP 1012, then present the updated ZIP to the community and the ECC early this week. After that we plan on working with the ECC to reach a mutually agreeable ZIP that meets our requirements and constitutes clear community consensus.
The implementation of the finalized ZIP for the beta version of the test network is scheduled for March 31, 2020, while the official activation in the test network is scheduled for May 31, 2020 and the activation in Mainnet for October 2020.
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