Zcash co-founder Sean Bowe has proposed discontinuing automatic funding for Zcash Community Grants (ZCG), arguing that its existing treasury can sustain operations for years. The proposal would redirect newly issued ZEC toward future mining rewards.
Sean Bowe Questions Zcash Grants Funding
In an October 27 statement, Bowe declared, “It’s time to turn off the ZCG funding stream.” According to his draft proposal, ZCG currently receives 8% of newly created ZEC, equivalent to approximately 144 tokens daily.
Bowe wants this allocation redirected into the Network Sustainability Mechanism, which reserves funds for future mining incentives. The five-member grants committee would retain its existing assets and continue supporting approved projects.
ZCG Treasury Valued at USD 125 Million
According to ZCG’s dashboard, the committee holds approximately 91,453 ZEC and USD 8.8 million in other assets, of which USD 2.4 million is already committed to recipients.
Valuing the committee’s 91,453 ZEC holdings at USD 1,300 per token, alongside its reported USD 8.8 million in other assets, Bowe estimates the treasury at approximately USD 127.7 million before accounting for committed funds.
At current issuance rates, the committee receives tokens worth approximately USD 68 million annually under Bowe’s valuation assumptions. Meanwhile, the Financial Privacy Foundation reported first-quarter program expenses exceeding USD 1.5 million, equivalent to approximately USD 6 million annually.
Bowe argues that even with ZEC trading at USD 500, existing reserves could support approximately five years of operations at USD 10 million in annual spending.
ZECsy Outreach Grant Faces Scrutiny
The proposal follows criticism surrounding ZECsy, an outreach initiative promoting private cryptocurrency payments at adult-industry events.
ZECsy requested USD 550,000 for conferences, workshops and outreach activities. The committee approved approximately USD 461,500 covering startup costs and nine initial milestones.
Committee member Hanh opposed the grant, questioning its cost and evidence of sustained adoption. Other members supported its potential to attract users. However, Bowe’s proposal does not directly reference ZECsy.
Governance Changes and Next Steps
ZCG members are elected through a community advisory panel, while another funding program receives 12% of newly issued ZEC and uses quarterly coinholder voting. Bowe proposes preserving that separate allocation.
Final Thoughts
The proposal highlights growing concerns about treasury management, governance and sustainable funding within Zcash. Implementation would require network-rule changes, and no activation date has been announced. Until then, automatic grants funding continues.
Also Read: Bitcoin Price Falls to USD 81K Amid Tech Stock Sell-Off & ETF Outflows
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
