Zcash Grants Propose Redirecting $124M to Mining Rewards

Zcash Community Grants proposed redirecting about $124 million in existing and future funding toward mining rewards. The plan involves transferring 36,200 ZEC from its treasury to the Network Sustainability Mechanism. The group also proposed forgoing about 62,000 ZEC in future allocations and tapering remaining funding until the 2032 halving. Together, these changes would redirect about 98,000 ZEC toward future block rewards. ZCG stated the plan is preliminary, with a full proposal to follow for community consideration.

The proposal follows earlier statements by Zcash co-founder Sean Bowe. He proposed ending the automatic funding stream to ZCG and redirecting its 8% share of the block subsidy to the network's sustainability reserve. Bowe noted the ZCG treasury holds over $125 million in funding. As of Wednesday, ZCG's dashboard listed 91,453 ZEC and $8.8 million in cash, with $2.4 million in outstanding grant commitments.

Critics have questioned the committee's accountability. Helius co-founder Mert Mumtaz called the proposal "nowhere near good enough," arguing funding decisions should be accountable to ZEC holders. Gemini co-founder Tyler Winklevoss also questioned the committee's oversight capabilities.