A Zcash governance proposal would redirect about $124 million in ZEC toward future mining rewards, but prominent critics argue that shifting funds does not resolve questions about who controls the money. Zcash Community Grants (ZCG) is offering to reduce its treasury and future allocations while extending a smaller funding stream through 2032.
A proposal from ZCG would shift 36,200 ZEC out of its treasury, which currently holds roughly 91,500 ZEC, and into the Network Sustainability Mechanism (NSM), a fund set aside for upcoming mining rewards. Should this pass, around 55,200 ZEC would remain with the committee, worth about $70 million as of this writing.
The group would also surrender about 62,000 ZEC, valued at $78.5 million, in future allocations. Together, the changes would redirect approximately 98,000 ZEC. Its remaining funding would taper through the 2032 halving, extending reduced support four years beyond the current automatic allocation’s scheduled end in 2028.
Zcash governance proposal faces accountability objections
Beyond the sums involved, critics have also questioned how accountable the committee truly is. Mert Mumtaz, co-founder and CEO of Helius, described the proposal as “nowhere near good enough,” contending that the treasury had already grown too large and that ZEC holders should have a say in funding decisions.
Gemini co-founder Tyler Winklevoss questioned the committee’s suitability after Mumtaz said a member had unfollowed him on X. Winklevoss argued that such behavior made someone unqualified to oversee $110 million. He and Cameron Winklevoss have called for ZCG to be dissolved and for coinholders to have greater control over spending.
Community developer Vini Barbosa defended grants as a legitimate way to finance projects benefiting the network, comparing development support with mining rewards. Tyler rejected that comparison, arguing that miners compete while risking their own capital.
Under a different plan put forward by Zcash co-founder Sean Bowe, ZCG’s guaranteed 8% cut of freshly minted ZEC would be eliminated and sent instead to the NSM. One report states that the existing treasury would be left intact, while crypto.news reports that existing grant obligations would be honored first, with the remaining treasury funds then transferred to the reserve.
ZCG described its own Zcash governance proposal as preliminary and said a full version would follow for community consideration.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
