Zcash Draft Would Redirect 8% of Block Subsidy to Network Sustainability Mechanism

Zcash co-founder and protocol developer Sean Bowe submitted a draft ZIP that would end the automatic allocation of 8% of block subsidies to Zcash Community Grants (ZCG) and direct that share to the network sustainability mechanism (NSM). The draft would temporarily keep the allocation out of circulation.

The draft lists ZCG holdings of about 91,453 Zcash (ZEC) and $8.8 million in other assets. It argues those funds are sufficient to support future grants without an automatic subsidy. The draft puts the current 8% allocation at about 52,560 ZEC annually.

The proposal would leave Zcash’s supply cap and miners’ existing subsidy share unchanged. It also would not change a separate 12% allocation whose distribution is controlled by token holders.