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Zcash (ZEC) is preparing for a community vote that could reshape development funding by redirecting 50,000 ZEC from its grants treasury toward future mining rewards. The proposal would replace an allocation of issued tokens, raising questions about how the network balances sustainability and developer support.
The plan would remove 50,000 ZEC, representing 55% of the Zcash Community Grants (ZCG) treasury, within 30 days of activation. Instead of distributing those tokens, their value would enter the Network Sustainability Mechanism introduced through the NU7 upgrade. The mechanism would gradually return ZEC to circulation through rewards for miners securing the blockchain.
ZCG currently receives 8% of newly created ZEC to finance wallets, infrastructure and development. Rising token prices have increased the treasury's value, prompting debate over whether its reserves exceed funding requirements.
Under the revised framework, ZCG's 8% issuance allocation would stop. The corresponding share would accumulate in a Future Dev and Legal Defense Fund until the next halving. Withdrawals would remain prohibited until another community-approved proposal establishes access rules.
Meanwhile, ZCG would retain its remaining reserves to finance commitments. According to the proposal's authors, those reserves could support operations for six years, compared with thirteen years under the previous arrangement. The 12% Coinholder-Controlled Fund would remain unchanged.
Project co-founders Zooko Wilcox and Sean Bowe developed the draft alongside Jason McGee. The revised approach follows ZCG's November 3 decision to abandon an earlier plan involving 98,000 ZEC from treasury assets and future allocations.
Community voting is scheduled for November 16–30. If sufficient consensus emerges, implementation would require the NU7.1 network upgrade. No activation date has been confirmed.
ZEC traded near USD 944.07, down 3.96% over 24 hours, amid cryptocurrency weakness. Recent figures showed a 15.25% price decline and a 13.4% reduction in open interest. According to Glassnode, 70% of Zcash developers have more than one year of cryptocurrency development experience, compared with 58% industry-wide.
The vote will determine whether the community supports redirecting treasury resources while preserving development funding.
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