Zcash Community Approves 20% Block Rewards Allocation for Grants System
The Zcash crypto community has voted to allocate 20% of block rewards towards a decentralized grants system, aiming to boost development initiatives within the ecosystem. This decision stems from a poll conducted among the Zcash Community Advisory Panel regarding the future of the Zcash Development Fund, set to expire in November. The preferred proposal, known as the “Lockbox for Decentralized Grants Allocation,” received significant approval, with 63% of votes in favor, outpacing other options.
Decentralized Funding Approach for Zcash Development
The approved proposal directs 20% of Zcash block rewards into a trust, with funds accumulating until a decentralized voting and signature mechanism is established for distribution. While this approach has its advantages, it also presents challenges such as the need for current development fund organizations to adapt to the new model and the technical complexities of setting up a secure, decentralized disbursement mechanism, as noted by the proposal’s author, “skyl.” This shift in funding follows the ECC’s announcement of moving away from direct protocol funding for Zcash towards a more decentralized funding approach, driven by community initiatives.
