Zcash Turns 10 as Grayscale Highlights Its 20% Developer Fund

That structure has given Zcash a recurring source of funding rather than leaving development entirely dependent on venture capital or private donations.

Zcash Funding Model Faces a New Proposal

The current Dev Fund sends 8% of block rewards to Zcash Community Grants (ZCG), and another 12% to the Coinholder-Controlled funding mechanism.

But that structure could soon change.

Zcash co-founder and protocol developer Sean Bowe has submitted a draft Zcash Improvement Proposal that would end the 8% block subsidy going to ZCG and redirect it to the Network Sustainability Mechanism (NSM).

Rather than entering immediate circulation, those $ZEC would be withheld under the proposed mechanism.

Bowe argues that ZCG already has sufficient reserves to continue funding grants. The proposal would leave ZCG’s existing treasury untouched, while also preserving the separate 12% allocation, miners’ share of block rewards, and $ZEC’s maximum supply.

The debate highlights how Zcash’s funding model continues to evolve alongside the technology it supports.

Privacy Pools Show a Decade of Iteration

Zcash’s clearest technical progress has come through its shielded pools.

The network launched with Sprout, followed by Sapling in 2018 and Orchard in 2022. In 2026, the Ironwood upgrade addressed a code vulnerability while introducing quantum-recoverable addresses and formal verification.