Zcash Community Grants (ZCG) has put forward a plan to shift roughly $46 million worth of Zcash tokens from its reserve fund into upcoming block rewards, yet prominent industry voices lashed out at the decision while calling for stronger fund oversight.
On Thursday, ZCG suggested moving 36,200 ZEC out of its total treasury—which sits near 91,500 ZEC—over to the Network Sustainability Mechanism (NSM), a system that sets aside coins for upcoming mining incentives. Should it win approval, the committee would keep around 55,200 ZEC, valued at approximately $70 million as of publication.
The organization additionally recommended giving up about 62,000 ZEC, equal to $78.5 million, in forthcoming allotments while scaling down its remaining budget up until the halving event in 2032. Combined, these adjustments would channel roughly 98,000 ZEC, valued near $124 million, back toward subsequent block rewards.
Based on the present setup, the automatic distribution granted to ZCG is set to wrap up in 2028. Their newly floated concept would stretch reduced financial support out across an extra four years.
ZCG mentioned that this blueprint remains in the early stages, with a comprehensive suggestion scheduled to arrive shortly for review by the wider community.
Mert Mumtaz, who serves as the co-founder and CEO of Helius, termed the initiative as failing to meet expectations, noting that the treasury was already overly massive and asserting that financial choices ought to remain answerable directly to ZEC owners.
Tyler Winklevoss, co-founder of Gemini, likewise cast doubt upon the group’s transparency following remarks from Mumtaz pointing out that a committee participant had blocked or unfollowed him on the X platform. Winklevoss stated that actions of that nature rendered an individual unfit to manage a $110 million chest.
This pushback arrives subsequent to an earlier recommendation by Zcash co-founder Sean Bowe aiming to terminate ZCG’s guaranteed 8% portion of newly minted ZEC tokens and route them to the NSM instead, while leaving the current reserve untouched.
Related: Winklevoss-backed Zcash ETF files with SEC for Nasdaq listing
Originally published at https://cointelegraph.com/news/zcash-grants-46m-proposal-governance-backlash?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
