Haseeb Qureshi, managing partner at the crypto-focused venture capital firm Dragonfly, has suggested discontinuing the Zcash developer fund once its current term expires in 2028.
“I’m of the opinion that this should be the final Dev Fund,” Qureshi stated in a Friday X post, contending that the pool is already substantial enough to support future work on Zcash and runs the danger of becoming “politicized” as its valuation approaches $100 million.
Data from ZecStats indicates that the Zcash development fund held 63,962 Zcash (ZEC) tokens at the time of publication, valued at approximately $95 million.
These comments arrive amid a broader sector debate sparked by the growth of the fund’s value following the ZEC token price rally. Conversely, other figures maintain that Zcash ought to preserve its development fund. Paradigm founder Matt Huang expressed in a Wednesday X post that the fund remains particularly critical “in this age of AI cyber capabilities” and rapid advancements in quantum technology.
Zcash pools, including the dev fund, also known as the lockbox. Source: ZecStats
The ZEC development fund functions as a protocol development treasury that accumulates 0.1875 ZEC tokens per block, accounting for 12% of the block subsidy under the NU6 upgrade. Its total balance remains out of active circulation until governance disbursement occurs.
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Industry split over who should control the ZEC development fund?
Observers within the industry are additionally discussing the appropriate oversight for the development fund. Haseeb from Dragonfly stated that control over the fund should not shift toward “pure token holder voting,” while voicing support for an alternative model where token holders select temporary councils.
Huang concurred with this perspective, noting that unadulterated token holder governance might introduce “unpredictability that could limit long-term trust as a monetary asset” and suggested a hybrid structure blending other governance methods.
Maxime Desalle, an investment analyst at Winklevoss Capital, proposed that the Zcash community should “completely get rid” of the development fund entirely to resolve all ongoing governance controversies tied to it, according to a Thursday X post.
In an earlier post on Sept. 9, Desalle asserted that the fund might jeopardize the security of Zcash while mirroring the bureaucracies and dependencies affecting numerous welfare states.
In an X post on Sept. 1, Zcash creator Zooko Wilcox maintained that the Zcash Community Grants Committee served as a primary factor in why Zcash “has survived and grown to where it is today.” On Sept. 14, Wilcox clarified that the committee accounts for only 40% of the development fund.
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