Zcash Community to Create Development Fund With 20% of Mining Rewards

Zcash Community to Create Development Fund With 20% of Mining Rewards

The Zcash community has voted to allocate 20% of mining rewards to a development fund that will be distributed among entities supporting the privacy-oriented cryptocurrency, reserving 8% of block rewards for grants to third-party developers.

Per a blog post published by the Electric Coin Company, the main firm behind Zcash’s development, the cryptocurrency’s community was polled through a variety of methods and ended up agreeing on allocating 20% of ZEC mining rewards to a development fund, leaving miners with the remaining 80% as of block 1,046,400.

The development fund will be shared among various parties. The Electric Coin Company will receive 7% of the network’s mining rewards, while the Zcash Foundation will receive 5%. The remaining 8% will be used as grants to third-party developers.

The blog post reads:

“Grant participants will receive the largest portion of development funds which will further decentralize Zcash-related efforts. Stipulations were also introduced for formal accountability and reporting requirements of each participant.”

This came after Zcash dropped the controversial Founder’s Reward, and after the Electric Coin Company moved the Zcash trademark to the non-profit Zcash Foundation to improve the coin’s decentralization.

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