Zcash grants committee drops plan to redirect 98,000 ZEC to future mining rewards

Zcash's Community Grants committee exists because the original 'Founders Reward' that funded development expired in 2020, replaced by a Dev Fund splitting 8% of block rewards among ZCG, the Electric Coin Company and the Zcash Foundation. That split has been renegotiated before through ZIPs and forum votes. This latest episode began when ZCG itself proposed shrinking its allocation and pushing 98,000 ZEC toward future mining rewards, reopening the perennial question of who controls Zcash's treasury.

With the proposal dead, ZCG keeps its 8% block-reward stream intact rather than ceding ZEC to miners, and the $129 million funding pool stays available for grant applicants rather than being redirected. Miners who stood to gain extra issuance get nothing from this round. Community members and developers who rely on grants avoid a cut, but the committee now has to revisit its own long-term funding model through the same governance process it tried to bypass.

A grants committee proposing to cut its own funding and redirect it to miners, then reversing course within four days under community pressure, tests whether Zcash's governance runs through open forum debate or through unilateral committee action. Supporters of decentralized treasuries will read the reversal as governance working as intended; critics will note that the proposal reached public view at all shows how much discretion a small committee holds over a nine-figure fund.

ZCG's funding structure now returns to open governance rather than committee fiat, meaning any future change to the 8% allocation or the 98,000 ZEC in question will need to clear the same forum process that just forced this retreat. Watch for a formal ZIP or follow-up forum proposal addressing the Dev Fund's post-sunset design, since that filing will determine whether miners, developers or the broader community gain lasting control over Zcash's issuance.

Zcash rose 1.9% in the 4 hours after the first headline, after rising 0.9% in the 2 hours before.

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