Zcash Grants Plan Would Redirect Nearly $124 Million to Mining Rewards

Zcash Community Grants (ZCG) proposed redirecting nearly $124 million in existing and future Zcash (ZEC) funding toward mining rewards in a preliminary plan that would extend reduced grants beyond 2028.

Under the outline presented Thursday, Oct. 29, ZCG would move 36,200 ZEC from its roughly 91,500-ZEC treasury into the Network Sustainability Mechanism (NSM) for future miner rewards. The transfer is valued at roughly $46 million and would leave the group with about 55,200 ZEC, worth approximately $70 million.

ZCG would also forgo about 62,000 ZEC in future allocations, valued at $78.5 million. Together, the treasury transfer and the forgone allocations amount to roughly 98,000 ZEC, or about $124 million, directed toward future block rewards.

ZCG’s automatic allocation is scheduled to end in 2028. The proposed alternative would continue funding at a reduced level for four more years, tapering the remaining allocation through the 2032 halving.

Zcash co-founder Sean Bowe previously proposed ending ZCG’s automatic 8% share of newly issued ZEC and directing those coins to the NSM while leaving the existing treasury untouched. His proposal was among several ZCG funding changes previously under discussion. The current outline would pair a treasury transfer with cuts to future allocations.

Helius co-founder and CEO Mert Mumtaz called the plan “nowhere near good enough.” He argued that ZCG’s treasury was already too large and that ZEC holders should have accountability over funding decisions.

ZCG described the outline as preliminary and said a full proposal would follow for community consideration.