Zcash Co-Founder Wants to End Grants Funding Stream

Zcash co-founder Sean Bowe has proposed halting the automatic 8% ZEC allocation to Zcash Community Grants, citing a treasury of about $125 million.

• Zcash co-founder Sean Bowe has proposed ending the automatic 8% share of newly created ZEC that goes to Zcash Community Grants (ZCG).
• Bowe estimates the program holds about $125 million after existing commitments, using an illustrative ZEC price of $1,300.
• The redirected funds would go to a reserve for future mining rewards, while ZCG would keep what it already has.
• The proposal comes amid criticism of a ZCG-funded outreach program at an adult-industry convention, though Bowe’s draft does not mention it.

Zcash co-founder Sean Bowe has called for an end to automatic funding for the privacy network’s community grants program. He argues the treasury is now large enough to cover years of spending without any new money flowing in.

His draft proposal, published late Monday, would stop the automatic allocation and send ZCG’s 8% share of newly created ZEC into a reserve for future miners. The committee would keep its current assets and continue awarding grants from them.

Bowe puts ZCG’s assets at about $125 million after outstanding grant commitments, valuing the remaining balance at an illustrative ZEC price of $1,300. The committee’s dashboard showed about 91,453 ZEC and $8.8 million in cash, with $2.4 million already committed to grantees.

The inflow continues no matter how much the committee already holds. At the network’s target pace, it receives about 144 ZEC a day, roughly $68 million a year.

By comparison, the Financial Privacy Foundation, which administers ZCG’s funds, reported just over $1.5 million in program expenses for the first quarter. That works out to about $6 million annualized, less than a tenth of the yearly inflow. Even if ZEC fell to $500, Bowe estimates the treasury would cover about five years of spending at an assumed $10 million a year.

ZCG’s five-member committee is elected by a community advisory panel and selects grants without a separate coinholder vote. A second funding program receives 12% of newly created ZEC, and holders vote on its grants every quarter.

Bowe wants to keep that larger allocation intact. His draft argues that continuing to pile funds into ZCG’s separate custody and governance arrangements adds risk when the program already has substantial reserves.

The redirected allocation would flow into the Network Sustainability Mechanism, which is designed to support future mining rewards, and would stay there for the rest of the grants stream’s existing term.

The proposal landed as a ZCG-funded outreach program drew criticism. The team behind it, ZECsy, demonstrated private payments at an adult-industry convention in Edison, New Jersey, over the weekend. It had requested $550,000 for work spanning adult-industry events, crypto conferences and workshops, including helping workers facing banking restrictions accept payments privately.

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