Zcash Community Grants withdraws proposal to redirect 98,000 ZEC to miners

Zcash Community Grants has withdrawn its October 29, 2026 proposal to redirect 98,000 ZEC to future block rewards, leaving decisions regarding its 8% share of newly minted coins to standard network governance. The move follows public scrutiny over treasury management and spending, including controversial grants such as the ZECsy adult-industry campaign. Alternative proposals from developers Sean Bowe, Zooko Wilcox, and Daira-Emma Hopwood remain open as community members debate dev fund allocations.

Zcash Community Grants proposal withdrawal

• ▪In an informal forum poll attached to Zcash Community Grants' October 29, 2026 proposal to redirect 98,000 ZEC, 21 voters favored it, six asked for details, and nine voted against it before the poll closed
• ▪Zcash Community Grants announced on November 2, 2026, that it withdrew its October 29, 2026, proposal to redirect approximately 98,000 ZEC to future mining rewards

Network Sustainability Mechanism funding plans

• ▪The Network Sustainability Mechanism functions as Zcash's protocol reserve designed to top up block rewards for future miners over time
• ▪A joint proposal by Sean Bowe, Zooko Wilcox, and Jason McGee would require Zcash Community Grants to transfer 50,000 ZEC from its treasury to the Network Sustainability Mechanism
• ▪The original October 29, 2026, plan by Zcash Community Grants proposed transferring 36,200 ZEC from its treasury holding of roughly 91,500 ZEC into the Network Sustainability Mechanism

Controversy over ZECsy project funding

• ▪Supporters of the ZECsy project argued financial privacy initiatives should include sex workers because they frequently face banking restrictions
• ▪Critics questioned Zcash Community Grants' spending accountability after its funded project ZECsy promoted private payments at an adult-industry convention in New Jersey in late October 2026

Zcash Community Grants operations

• ▪The five-member Zcash Community Grants committee approves funding for developers and community projects without requiring a coinholder vote on individual awards
• ▪The five-member Zcash Community Grants committee receives 8 percent of all newly created ZEC, amounting to approximately 144 ZEC per day

Sean Bowe funding proposals

• ▪Zcash co-founder Sean Bowe initially proposed ending automatic funding for Zcash Community Grants altogether before co-authoring a joint draft proposal with Zooko Wilcox and Jason McGee
• ▪Zcash co-founder Sean Bowe, Zooko Wilcox, and Jason McGee authored a joint draft proposal to divert Zcash Community Grants' 8 percent ZEC stream into a Future Dev and Legal Defense Fund

Zcash Dev Fund expiration

• ▪Josh Swihart of Zcash Labs argued that the Zcash Dev Fund should be brought to an end, characterising the accumulation of funds as a governance crisis
• ▪The Zcash Dev Fund is scheduled to expire in 2028