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Zcash Grants Committee Withdraws 98,000 ZEC Plan

Zcash Community Grants has withdrawn its plan to route about 98,000 ZEC to future mining rewards, leaving any funding change to the network’s governance process.

Crypto Talk Editorial

Zcash Grants Committee Withdraws 98,000 ZEC Plan

Will Zcash’s grants funding now flow to miners? No: Zcash Community Grants (ZCG) has withdrawn its proposal to redirect about 98,000 ZEC to future mining rewards, leaving any change to the community’s usual governance process. The committee said so on Nov. 3, less than a week after sharing the plan.

For ZEC users, the proposal’s withdrawal means the proposed change has not altered the funding rules or put those coins into a miners’ reserve.

In its withdrawal post on the Zcash Community Forum, ZCG said the discussion had moved quickly and it would not take the proposal forward. It said the future of the Development Fund and its treasury should be decided through Zcash’s usual governance process.

What would the 98,000 ZEC plan have changed?

The original outline combined a cut to future grants funding with a possible transfer from ZCG’s existing treasury. It proposed sending about 36,200 ZEC from a treasury of roughly 91,500 ZEC to the Network Sustainability Mechanism (NSM), a reserve intended to support miners’ block rewards over time. The rest of the headline total came from reducing ZCG’s expected funding through the 2028 halving from about 109,000 ZEC to 47,000, then tapering grants further toward 2032.

Those were proposed figures, not a completed transfer or a final rule change. CoinDesk’s report on the withdrawal says ZCG receives 8% of newly created ZEC, about 144 coins a day, and that its automatic payments remain unchanged because no competing funding proposal has been adopted.

Do ZEC holders or wallet users need to act?

There is no action to take in a wallet to respond to this withdrawal: the plan has been dropped, and the proposed treasury transfer did not happen. It also does not, by itself, change the coins users hold or the rules governing their transactions. Anyone who wants a different future for the Development Fund will need to follow the community governance discussion; ZCG has left that decision to the community, but its withdrawal post does not set out a timetable or a replacement plan.

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