Zcash co-founders propose transferring 8% of ZCG block subsidies to a network sustainability mechanism.
Zcash co-founder Sean Bowe has released a ZIP draft proposing to halt the automatic allocation of block subsidies to the Zcash Community Grants (ZCG) and redirect the original 8% subsidy portion to the Network Sustainability Mechanism (NSM). The draft notes that ZCG currently holds approximately 91,452.98 ZEC, valued at around $125 million, indicating that existing funds are sufficient to continue supporting related activities without requiring ongoing block subsidies. If the proposal takes effect, starting from a designated activation height, the original 8% allocation will be transferred to the NSM fund until the original funding stream expires; ZCG's existing assets and governance rules will remain unchanged.