Bankless: Zcash Development Funding Surplus Sparks Controversy, Four Proposals Target Block Reward Distribution Mechanism

Bankless published an article discussing the controversy surrounding excess development funding for Zcash, noting that the size of the Zcash development grant pool has continued to expand, with its current estimated net value reaching approximately $125 million—far exceeding immediate expenditure needs. Zcash co-founder and current head of Tachyon, Sean Bowe, has introduced a proposal recommending the termination of the 8% block reward currently allocated to ZCG during a future network upgrade. On the development funding mechanism, the community has so far put forward four proposals, which respectively involve ending ZCG grants, eliminating the entire development fund allocation system, or gradually reducing the allocation rate to zero. Proponents argue that the current mechanism causes funds to continuously accumulate as ZEC prices rise, while ZCG remains outside direct control by token holders. Opponents, however, worry that scaling back development funding without viable alternatives could hinder the protocol’s ongoing development and maintenance. All proposals remain under discussion and have not yet been finalized.