Zcash Community Grants has proposed moving 36,200 ZEC from its treasury, about $46 million, to the mechanism that reserves coins for future mining rewards, Cointelegraph reports. It also proposed giving up about 62,000 ZEC of future allocations and tapering its funding until the 2032 halving, redirecting about 98,000 ZEC in total. The proposal is preliminary. Critics including Helius's Mert Mumtaz and Tyler Winklevoss say it falls short and call for accountability to holders.

What it means: The proposal is a response to co-founder Sean Bowe's plan to end the automatic 8% share of new coins that goes to the committee. The committee is attempting a compromise: it returns part of the treasury but asks to keep receiving reduced funding for four more years. The critics raise a question that applies to every project with a community fund: who decides how large sums are spent, and to whom are they accountable. The debate is sharper because Zcash has attracted more institutional interest, with exchange-traded products and ETF filings. For those following the sector from Greece, the case shows that a protocol's governance can change the supply of new coins and miners' income, and that such changes are decided through processes very different from those of a company or a regulated fund. MiCA-licensed providers offering the coin must inform customers of material changes, so the final decision is worth watching.

Read the original on Cointelegraph

Related service: Consulting

Related stories