Zcash Grants Committee Withdraws 98,000 ZEC Funding Plan

Key Notes

• Zcash Community Grants withdrew its own funding proposal after community feedback.
• The roughly 98,000 ZEC total combined an existing treasury contribution with forgone future allocations.
• The existing grants stream continues while separate funding proposals remain under discussion.

Zcash Community Grants has withdrawn its proposal to redirect roughly 98,000 ZEC from existing and future grant funding toward long-term mining rewards, leaving the network’s broader funding dispute unresolved.

In a November 3 forum announcement, the committee said it had shared its outline to gather feedback and had decided against developing it further. “We’ve decided not to take this proposal forward,” it wrote, saying the community should determine the future of the development fund and ZCG’s treasury through Zcash’s usual governance process.

The decision ends the committee’s own October 29 initiative. It does not cancel every proposal to change Zcash funding or reverse a transfer that had already taken place.

What the 98,000 ZEC Figure Included

The withdrawn funding outline combined two changes. ZCG would have contributed about 36,200 ZEC from a treasury it estimated at roughly 91,500 ZEC to the Network Sustainability Mechanism, or NSM.

It also proposed giving up approximately 62,000 ZEC in future funding. The committee compared about 109,000 ZEC under the existing allocation with roughly 47,000 ZEC under its alternative, which would taper grants and extend reduced payments toward the 2032 halving.

Together, those components produced the approximately 98,000 ZEC headline total. The full amount was not sitting in a treasury awaiting an immediate transfer: most represented funding the committee expected to receive in the future.

ZCG acknowledged in the outline that its incoming allocation exceeded what it could spend effectively. Its proposed answer was to reduce grants over time while directing more value toward future network security.

The Existing Funding Stream Continues

The committee currently receives an 8% share of newly created ZEC, equivalent to about 144 ZEC a day at the scheduled issuance rate, CoinDesk reported. With no replacement adopted, the withdrawal leaves that arrangement unchanged.

The NSM is designed to hold value outside circulation and reintroduce it gradually through future block subsidies. Its protocol design preserves the 21 million ZEC supply ceiling. Redirecting funds there therefore concerns the timing and destination of issuance, rather than an immediate bonus paid to miners.

Other Proposals Remain Separate

Sean Bowe’s earlier proposal would end ZCG’s automatic 8% allocation and direct it into the NSM while preserving the committee’s existing treasury. That differs from the treasury contribution and taper that ZCG has now abandoned.

A separate joint draft from Bowe, Zooko Wilcox and Jason McGee proposes a 50,000 ZEC NSM contribution and a new lockbox for future development and legal defense. It remains marked Draft, with no reference implementation listed.

ZCG’s withdrawal does not enact either alternative. The dispute over how much funding the grants program needs, who controls it and how to support future mining rewards still requires community agreement and the relevant implementation work.

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