Zcash Co-Founder Suggests Halting Grant Program Funding with $125 Million Treasury

Zcash co-founder Sean Bowe on Monday proposed to cease automatic funding for Zcash Community Grants (ZCG): the treasury is large enough to cover years of expenses without new inflows. The initiative would stop the distribution of 8% of newly created ZEC and direct the share to a reserve for future miner rewards – into a network sustainability mechanism where it would remain until the end of the program's term. The committee will retain the assets and continue to issue grants. "It's time to turn off the ZCG tap. ZCG has over $125 million, and it will receive millions more before the faucet is closed. The program was not designed for such a volume," Bowe wrote. After commitments, the program has about $125.3 million at a ZEC price of $1,300.

The five-member ZCG committee is elected by the community and selects grants without a separate token holder vote. The second program receives 12% of newly created ZEC, with holders voting on its grants quarterly. Bowe wants to maintain this distribution: accumulating funds in separate ZCG structures is risky with substantial reserves. The panel showed about 91,453 ZEC and $8.8 million, of which $2.4 million is reserved for grantees. Automatic distribution proceeds regardless of the accumulated amount: at the network's target pace, the committee receives about 144 ZEC per day – approximately $68 million per year. The Financial Privacy Foundation reported $1.5 million in expenses for the quarter – about $6 million per year, less than one-tenth of the inflow. Even at $500 per coin, the treasury would last about five years with $10 million in expenses per year.

The proposal emerged amid criticism of ZCG for funding a demonstration of private payments at an adult industry convention. ZECsy requested 550,000; the committee approved ~461,500. Photos from the Exxxotica booth in Edison spread on X. The August approval was split: Han opposed, others in favor; a nine-month term for evaluation. Bowe's draft does not reference the ZECsy grant and relies on reserves and inflows. The proposal has no activation date, it requires a change in network rules; until the change takes effect, ZCG receives about 144 ZEC per day.