Zcash Community Grants (ZCG) has withdrawn a proposal to extend its funding beyond the 2028 halving after heavy criticism from the community, Crypto Insiders reported on November 4.
Under the current rules, 20% of newly issued ZEC funds development: ZCG receives 8% to pay independent teams, a holder-voted pot gets 12% and miners receive the remaining 80%. That arrangement ends at the 2028 halving. On October 29, ZCG proposed continuing both funding streams for four more years, with income falling by about 3% per month until the 2032 halving. The portion no longer paid to the funds would go to a miner reserve, and ZCG would move part of its existing treasury there, an estimated 98,000 ZEC.
Critics said the plan extended ZCG’s position by four years and called for faster reductions, more holder control or an earlier end. The committee acknowledged that its current income exceeds what it can spend well. On November 3 it withdrew the proposal, saying the discussion had moved quickly and the community should decide through the regular governance process.
A competing proposal from Zooko Wilcox of Shielded Labs, Sean Bowe of Tachyon and Jason McGee, presented on October 30, would stop the future ZCG stream once implemented, redirect the same share to a new development and legal defense fund until 2028, and have ZCG transfer 50,000 ZEC to the miner reserve. Neither plan has been adopted: public polls come first, and network software changes only with sufficient support.
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Sources:
Crypto Insiders: Zcash-fonds trekt omstreden plan in na felle kritiek
Zcash Community Forum: ZCG gets too much ZEC, here’s our plan to fix that
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