Just like Bitcoin Cash used to do, the ZCash mining community will be donating part of its income to support the project.
The Electric Coin Company (ECC), the foundation that supports the cryptocurrency ZCash (ZEC), reported that the mining community agreed to allocate 20% of its profits to promote the development of the protocol infrastructure, as well as to fund events and initiatives aimed at promoting the adoption of your digital currency.
According to information published by ECC, the expiration date of the funds for the financing of the network is about to expire. Therefore, after mining block 1,046,400, the network miners would only obtain 80% of the calculated rewards, and the rest would go to the foundation’s treasury to meet the aforementioned objectives.
The need for the development of this proposal arose since August 2019, when ZCash CEO Zooko Wilcox addressed a letter to the members of the mining community requesting the creation of a new fund for the development of the network, in which mentions:
I hope that the community decides to renew the structure of the “Development Fund”, allocating rewards from the future blocks for basic support functions, such as software development, user support, commercial development, regulatory and governmental scope, audits, security monitoring, education, development of new protocols, etc.
Mining community donates 20% productivity to ZCash
Explaining a little more the proposal, Josh Swihart of ECC wrote in his blog that the idea that was in force from the beginning was to allocate 80% of the profits per block to the miners for four years, leaving the remaining 15% for investors and founders , allocating 5% to central development. The ZCash Foundation conducted a survey among community members to develop a new financing plan, and chose to create a new development fund with 20% of the mining rewards.
Regarding the activation of this proposal, Swihart detailed:
“On the basis that we reach an agreement with the ZCash Foundation and achieve that miners receive 80% of the profits from block 1,045,400 … this change would be implemented in November 2020, just to coincide with the first halving scheduled for the ZCash currency. “
This new distribution of that 20% would look like this:
- 7% of the rewards for ECC.
- The ZCash Foundation would receive 5%.
- The remaining 8% will go to a grant fund to support third parties.
In turn, they would apply new measures and guidelines for reports related to fund management.