Zcash holders to vote on pulling 50,000 ZEC from the grants treasury

A draft proposal from Zcash co-founders would move half of the grants committee's ZEC into a miner reward reserve and end its automatic block reward cut

Zcash holders are set to start voting next week on a plan that would take 50,000 ZEC out of the network’s grants treasury. Instead of being spent on grants, that value would flow back to miners through future block rewards.

The proposal comes from co-founders Sean Bowe and Zooko Wilcox, writing with Jason McGee. It would reshape how Zcash pays for development, and it arrives days after the grants committee pulled a funding plan of its own following community pushback.

What the draft actually proposes

The draft Zcash Improvement Proposal, or ZIP, was merged into the project’s specifications repository on Wednesday. It does two main things.

First, it asks Zcash Community Grants (ZCG) to transfer 50,000 ZEC from its existing treasury into the Network Sustainability Mechanism, known as the NSM. Second, it would end ZCG’s automatic 8% slice of block rewards once the NU7 network upgrade arrives.

That 8% stream would not vanish. It would be redirected into a new locked pool called the “Future Dev and Legal Defense Fund.”

Any spending from the new fund would require its own proposal.