Zcash Proposes to Withdraw 50,000 ZEC from Grant Fund

The Zcash community is preparing to consider a proposal to withdraw 50,000 ZEC from the Zcash Community Grants (ZCG) treasury—a grant program for independent developers, wallet creators, and other ecosystem projects. Voting by coin holders and community representatives is scheduled for November 16–30, 2026. The proposed amount represents about 55% of ZCG's reserves expressed in ZEC.

Coins to re-enter circulation through miner rewards

The draft was prepared by Zcash co-founders Zooko Wilcox and Sean Bowe, along with Jason McGee. If the initiative is supported and activated, 50,000 ZEC will be withdrawn from circulation with their value credited to the Network Sustainability Mechanism (NSM)—a network sustainability mechanism launched in the NU7 update. The funds will gradually return to circulation through future miner rewards, which ensure the network's operation.

Grant program to lose 8% of new coins

The authors also propose to stop directing 8% of new block rewards to ZCG. Instead, the coins will accumulate in a separate fund for future development and legal protection until the next halving of miner rewards. Spending of the accumulated funds will require a separate community decision.

According to the authors' calculations, after the withdrawal of 50,000 ZEC, the remaining ZCG reserves will last approximately 6 years instead of 13. The estimate is based on an assumed price of $1300 per ZEC and previous spending levels, so the actual duration may vary.

Voting to determine further changes

The implementation of the initiative will require community consent and a subsequent network update NU7.1, the date of which has not yet been set. Once the changes are activated, the withdrawal should occur within 30 days. For now, the proposal remains a draft, and no funds have been withdrawn from the treasury under it.

Amid the discussions on November 11, the price of ZEC fell below $1000 for the first time since September. The decline occurred alongside a general downturn in the crypto market following the release of U.S. inflation data.