Zcash Community Grants Committee Withdraws Proposal to Reallocate 98,000 ZEC as Governance Dispute Continues

TechFlow, November 4 — According to CoinDesk, the Zcash Community Grants Committee (ZCG) withdrew a proposal to redirect approximately 98,000 ZEC toward future miner rewards. The proposal was submitted on October 29 to adjust the allocation of community grant funds, but after community opposition, the committee announced on November 3 that it would no longer advance it, saying future funding adjustments should follow Zcash's existing governance process.

Under the original proposal, ZCG planned to move 36,200 ZEC from its reserves of approximately 91,500 ZEC into the Network Sustainability Mechanism to gradually replenish miner block rewards, while reducing its expected funding revenue up to the 2028 halving from approximately 109,000 ZEC to 47,000 ZEC.

The dispute stems from ZCG's fund allocation and accountability issues. The five-member committee currently receives 8% of newly issued ZEC each year, or about 144 ZEC per day, without requiring token holder votes for each allocation. Previously, ZCG-funded project ZECsy promoted private payments at an adult industry expo in New Jersey, raising community concerns about the appropriateness of fund use.

Other funding reform proposals remain under discussion in the community, including fully eliminating ZCG's automatic allocations, transferring part of the funds into reserves and establishing new development and legal defense funds, and retaining the 8% allocation while redirecting funding priorities. None of these proposals has yet been approved; until a network upgrade changes the rules, ZCG will continue to receive about 144 ZEC per day.

Source: TechFlow