The Zcash community recently made a significant decision to approve a new decentralized grant allocation system that involves allocating 20% of block rewards to a lockbox for future disbursement based on community polling results. This move has been seen as a major pivot for the blockchain network and has garnered support from most community members.
The proposal, known as the “Lockbox for Decentralized Grants Allocation,” received about 63% of the community’s support following a poll by the Zcash Community Advisory Panel. This decision comes as the Zcash Development Fund is set to expire in November, prompting the community to outline future development plans for the project.
Kris Nuttycombe, the author of the proposal, highlighted that the new decentralized development fund will be specifically for grants, with funds accumulating until the system is ready for disbursement. Unlike the current direct funding system, the decentralized system will involve community votes before funds are distributed.
Josh Swihart, CEO of Electric Coin Company, the team behind Zcash, stated that the recent poll indicated a significant shift for the privacy-focused digital asset. The community’s desire for change has led to a transition from the legacy direct-funding model to a more open option, promoting greater decentralization and accountability.
In addition to the 20% block reward allocation, the community also supported a separate proposal that involves locking 12% of the block reward while distributing another 8% to the Financial Privacy Foundation (FPF) for the Zcash Community Grants Committee (ZCG) to fund independent teams in the Zcash ecosystem.
Zcash, which was launched in October 2016, is a privacy-focused blockchain built on Bitcoin’s codebase with a fixed supply of 21 million coins. The shift towards decentralized grant allocations marks a significant development for the Zcash community and reflects a commitment to fostering greater community involvement and transparency in the project’s future development.