Zcash Co-founder Proposes Ending Automatic Grant Funding

Zcash co-founder Sean Bowe has introduced a proposal to terminate the automatic funding of the network's grant program. The project suggests that current reserves already hold enough resources to cover expenses for the coming years without the need for new allocations.

The current structure directs 8% of all newly created ZEC units to the grant committee. Bowe argues that this flow should be redirected to the network's sustainability mechanism which aims to support future mining rewards.

The committee would retain the assets already under its custody. The total value of these resources is estimated at approximately $125 million based on the asset's current price. The grant program recorded expenses of about $1.5 million in the first quarter of this year.

The five-member committee selects projects without the need for direct votes from coin holders. Bowe states that the continued accumulation of funds in a separate structure creates unnecessary risks for the ecosystem's governance.

The proposal comes at a time of debate regarding the network's financial management. Other industry members have also recently questioned the longevity and politicization of development funds that reach high valuations.