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The Zcash crypto community has approved a proposal to allocate 20% of block rewards to a new decentralized grants system, aiming to enhance development initiatives across the ecosystem.
This decision follows a poll conducted among the Zcash Community Advisory Panel, focusing on the future of the Zcash Development Fund, which is set to expire in November.
According to a Monday blog announcement from the Zcash Foundation, the favored proposal, the “Lockbox for Decentralized Grants Allocation,” received 14% “strongly approve” and 34% “approve” votes, securing a cumulative approval of 63%, significantly outpacing other options.
The proposal directs 20% of Zcash block rewards into a trust, with funds accumulating until a decentralized voting and signature mechanism is established for disbursement.
Despite some advantages, the transition poses challenges, including the need for Zcash’s current development fund organizations to adapt to the new model and the technical complexities of establishing a secure, decentralized disbursement mechanism. The proposal’s author, under the alias “skyl,” noted in a forum post.
The vote follows the Electric Coin Company’s (ECC) announcement of a shift in funding approach for the Zcash cryptocurrency, signaling a move away from direct protocol funding and advocating for decentralization. The Colorado-based company expressed concerns about the current funding model, referring to it as the “dev tax,” and emphasized the need for community-driven initiatives to shape the future of Zcash.