As we approach critical decisions about the future of Zcash governance and funding, the Zcash Foundation Board has unanimously agreed to endorse the Community and Coinholder Funding Model (C&C) ZIP proposal. This model represents a balanced, forward-looking approach that prioritizes decentralization, cooperation, and sustainability. Here’s why we believe it is the best path forward for Zcash.
Giving Coinholders a Voice
One of the most compelling aspects of this proposal is its focus on empowering coinholders with a meaningful voice in funding decisions. By allocating 12% of block rewards to a Coinholder-Controlled Fund, this model ensures that those who actively hold and support ZEC can directly influence how resources are distributed. This mechanism not only ensures decentralized decision-making but also strengthens accountability, aligning funding priorities with the interests of those invested in Zcash’s success.
Recognizing ZCG’s Success
Zcash Community Grants (ZCG) has been a remarkable advocate for ecosystem growth, particularly in supporting smaller-scale projects that bring tangible benefits to the ecosystem. From light wallets to educational platforms, ZCG has consistently funded initiatives that enhance usability and adoption. This proposal builds on their success by continuing to allocate 8% of block rewards to ZCG, ensuring that community-driven innovation remains a cornerstone of Zcash development.
Fostering Cooperation Between Core Groups
A recurring theme in Forum discussions has been the need for better collaboration among key organizations like ECC, ZF, and Shielded Labs. The C&C model encourages cooperation by clearly defining roles and responsibilities while maintaining decentralized control over funds. By endorsing this ZIP proposal, we aim to further unify efforts across these groups, creating a more cohesive roadmap for Zcash’s future.
Promoting Positive Community Development
At its core, the C&C proposal is about deliberately empowering the community and not consolidating power within large organizations. It provides mechanisms for transparent grant applications, community feedback, and coinholder voting, all designed to ensure that funding decisions reflect what’s best for Zcash as a public good. This approach minimizes risks while maximizing opportunities for growth and innovation.
Why This Model is the Least Risky
With the expiration of ZIP 1015 looming in November 2025, inaction would pose significant risks to Zcash’s development continuity. The proposed funding streams mitigate these risks by ensuring resources remain available for essential projects without introducing unnecessary complexity or centralization. Additionally, safeguards like multisig-controlled funds reduce vulnerabilities to theft or loss.
Looking Ahead
Endorsing this model is not just about solving immediate funding challenges, instead it’s about setting Zcash on a sustainable trajectory for years to come. By giving coinholders a voice, supporting proven programs like ZCG, and fostering collaboration among ecosystem partners, we believe this ZIP proposal offers the best chance to ensure Zcash continues to be a decentralized, community-driven protocol.
While we support the C&C funding model, we deeply value the voice of the community and are fully-committed to honoring the collective decision made by the Zcash community, even if it differs from our recommendation. We invite you to share your thoughts and feedback as we move forward together.
The Zcash Foundation Board