Tyler Winklevoss and prominent developers want to dismantle the privacy network's grant programs, even as Grayscale credits their funding model with years of innovation.
Zcash faces competing proposals to scrap or extend developer subsidies as growing investor interest swells the privacy network's funding reserves.
The debate intensified after Zcash co-founder Sean Bowe proposed ending automatic payments to Zcash Community Grants (ZCG), arguing that the program already controls enough resources to finance years of development without additional subsidies.
His proposal has drawn more aggressive demands from ZODL founder Josh Swihart, Gemini co-founder Tyler Winklevoss, and other ecosystem participants, while a rival plan would preserve reduced development funding until 2036.
The disagreement comes as Zcash approaches its 10th anniversary on Oct. 28, with renewed institutional interest and rising private transaction activity increasing scrutiny of how the network allocates newly created ZEC.
In an Oct. 26 draft proposal, Bowe called for redirecting ZCG's 8% share of block rewards into the Network Sustainability Mechanism (NSM), a protocol reserve that would eventually support future block rewards. Bowe said on X:
He added that ZCG has more than $125 million in funding and would receive millions more before the proposed cutoff, arguing that the program was never designed to manage such substantial resources.
The figure is based on approximately 91,453 ZEC, $8.8 million in dollar-denominated assets, and $2.4 million in outstanding obligations, assuming ZEC trades at $1,300.
12 million in annualized expenses based on its first-quarter spending.
Source link
