The Zcash community has agreed to allocate 20% of the network’s mining rewards to a development fund that will be distributed among entities supporting the development of ZEC.
According to a blog post published by the Electric Coin Company (ECC), the community voted on the move as in November 2020 the Founder’s Reward fund , that saw 15% of mining rewards be allocated to investors and founders and 5% to the ECC, will expire, and no clear way of funding Zcash’s development is defined.
While the community has through various channels – including forums, Twitter, Telegram, and more – discussed potential ways to fund development, a poll created by the non-profit Zcash Foundation resulted in a vote to create a development fund with 20% of the mining rewards.
The proposal would see miners receive 80% of block rewards as of block 1,046,400, and would be implemented in November 2020, at the time of the first Zcash halving, which will cut ZEC rewards in half. The fund would allocate 7% of rewards to the ECC, 5% to the Zcash Foundation, and 8% for grants to support third-party developers.
Source: ECC
The allocation to third-party developers is expected to further decentralize the Zcash community and development. As CryptoGlobe reported, in November of last year the ECC passed the ownership of the cryptocurrency’s trademark to the non-profit Zcash Foundation to improve ZEC’s decentralization.
The move saw both parties agree to “honor and protect” the cryptocurrency community, while also making it clear no party will be able to independently declare a specific chain can be called Zcash if a hard fork occurs.
Featured image via Unsplash.
