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

TechFlow reports that on October 28, Bankless published an article discussing the controversy over Zcash's surplus development funding, pointing out that the fund size of the Zcash development grant program continues to grow. The current net fund balance is estimated at approximately $125 million, far exceeding current expenditure needs. Zcash co-founder and current head of Tachyon, Sean Bowe, has proposed a draft recommending the termination of the 8% block reward currently allocated to ZCG in a future network upgrade.

Regarding the development funding mechanism, four proposals have emerged within the community so far, covering options such as terminating ZCG grants, canceling the entire development fund grant mechanism, or gradually reducing the allocation ratio to zero. Supporters argue that the current mechanism causes funds to continuously accumulate as ZEC prices rise, but ZCG is not directly controlled by token holders; opponents worry that reducing development funding without a viable alternative could impact the protocol's subsequent development and maintenance. Currently, all proposals remain under discussion and have not yet been finalized.