Zcashⓩ, a privacy-oriented cryptocurrency, has demonstrated its ability to evolve and adapt since its inception. With an active and engaged community, the project has launched innovative development funds to ensure its growth and sustainability. Here we explore the evolution of the current development fund and the transition to a new model with the network update NU6.
The Current Development Fund
The Zcashⓩ development fund was first implemented in 2020, during the halving event. This fund was created to ensure that Zcash had a continuous source of funding by allocating 20% of the mining bounties. The distribution of the fund was structured as follows:
8% to Zcash Community Grants (ZCG), supporting independent developers.
7% to Electric Coin Company (ECC), responsible for research, development and adoption of Zcashⓩ.
5% for the Zcash Foundation (ZF), focused on building a financial privacy infrastructure.
This model ensured that the top three organizations received funding to continue their contributions to the Zcash ecosystem.
Transition to the New Development Fund and NU6
The current development fund will expire in November 2024. By then, Zcashⓩ will implement a new development fund model with the NU6 network upgrade. This new model, called Hybrid Deferred Development Fund, will be released with zcashd version 6.0.0.
In the new scheme:
8% will be allocated to Financial Privacy Foundation (FPF) for use by the Zcash Community Grants Committee (ZCG).
12% will be placed in a lockbox for future decentralized grants, with disbursement determined by the community.
🔄 This update reflects Zcashⓩ's commitment to decentralization, inclusive participation and resilience.
During the year of this new fund, the community will assess whether a new model or adjustments towards a non-direct Development Fund funding model is required where funds are not distributed directly to final beneficiaries but through intermediaries or specific programs.
The transition to a new development fund is a testament to Zcashⓩ's commitment to innovation and community. At ZingoLabs, we share this vision and will continue to work to develop solutions that take full advantage of the opportunities provided by this new model.
📌 ZIP 1015: Block Reward Allocation for Non-Direct Development Funding - Read Here!
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