Zcash Co-Founder Moves to Cut Grants Committee's 8% Share of New ZEC

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公開日 October 27, 2026 - 15:23 UTC | 4 分で読めます

Zcash co-founder Sean Bowe has drafted a proposal to stop the automatic flow of new ZEC to Zcash Community Grants, arguing its treasury already exceeds $125 million. The change would need a network rule update and would leave the committee's existing funds untouched.

Bowe's draft would switch off the committee's share of new coins

Zcash co-founder Sean Bowe has proposed ending the automatic funding stream that feeds Zcash Community Grants (ZCG), the committee-run program that pays for projects in the ecosystem. The Block reported that Bowe cited a treasury valued at more than $125 million. On X, Bowe said the program "was never designed to handle this amount of funding," according to Cointelegraph.

CoinDesk reported that the draft was published late Monday. It would halt the automatic allocation and redirect ZCG's remaining 8% share of newly created ZEC into a reserve. The committee would keep the assets it already holds and continue to award grants from them.

Where the redirected ZEC would go instead

Cointelegraph reported that the draft would send the 8% to the Network Sustainability Mechanism through 2028, when the present funding period finishes. According to Cointelegraph, the mechanism takes ZEC out of circulation and releases it again over time through later block rewards. CoinDesk described it as a reserve meant to support future mining rewards.

In practical terms, the coins would stop accumulating in the committee's custody and would instead sit in a protocol-level reserve. The committee would not lose anything it has already received.

Bowe's argument, as CoinDesk summarised it, is that continuing to add funds to ZCG's separate custody and governance arrangements creates extra risk when the program already holds substantial reserves. The five members of ZCG's committee are chosen by a community advisory panel, and grant decisions do not go to a separate coinholder ballot. Another program gets 12% of new ZEC issuance, and holders vote on its grants each quarter. Bowe wants that larger allocation preserved.

The treasury numbers behind the proposal

The headline figure depends on a price assumption, which matters because the committee holds most of its value in ZEC. The reported numbers, mostly from CoinDesk and Cointelegraph, are below.

The committee's dashboard showed 91,453 ZEC and $8.8 million in cash, with $2.4 million in outstanding grant commitments.
Bowe values the remaining balance at $125.3 million, using an illustrative ZEC price of $1,300.
Cointelegraph put the ZEC holdings alone at about $111 million at press time.
At the network's target pace, the allocation brings in about 144 ZEC a day, worth about $68 million a year, according to CoinDesk.
The Financial Privacy Foundation, administrator of ZCG's funds, reported program expenses of a little above $1.5 million for the first quarter. CoinDesk calculated that as about $6 million annualized, under one-tenth of what the allocation brings in each year.
Bowe estimates that, with ZEC priced at $500, the existing treasury would fund roughly five years of spending if outlays run at $10 million annually.

How the three outlets' accounts line up

The three outlets agree on the core: Bowe wants to end the automatic stream, and the treasury is valued above $125 million. The Block's item, based on its headline and summary, goes no further than that. Cointelegraph supplies Bowe's quote, the 2028 end date and the Sustainability Mechanism's design.

CoinDesk adds the most detail on method. It explains that the $125.3 million figure is net of grant commitments and depends on the $1,300 price. It also adds the inflow rate and the comparison with spending. Cointelegraph's roughly $111 million for the ZEC alone is a separate, press-time valuation, so the two dollar totals reflect different pricing and scope rather than a clear conflict.

The timing labels differ slightly. CoinDesk says the draft appeared late Monday, while Cointelegraph quotes Bowe's post as Tuesday and dates the dashboard reading to Wednesday. Cointelegraph also cites ZecStats for a separate development lockbox holding 72,351 ZEC, worth roughly $89 million. CoinDesk does not mention that figure.

A grant dispute and an earlier call to end developer funding

CoinDesk said the draft came as a ZCG-funded outreach effort drew criticism for showing private payments at an adult-industry convention last weekend. The team behind it, ZECsy, requested $550,000; the committee approved startup funding plus nine initial milestones worth about $461,500 in total. Committee member Hanh opposed the grant over its cost and the evidence of lasting adoption, CoinDesk reported. CoinDesk also noted that the draft makes no reference to the grant and instead relies on the program's reserves and ongoing inflows.

Cointelegraph added that Haseeb Qureshi, a managing partner at Dragonfly, argued in September for closing the Zcash developer fund once its present term runs out. He said it risks being "politicized" as it approaches $100 million in value. That proposal concerns the developer fund rather than ZCG, so the two efforts are related but distinct.

What to watch before anything changes

CoinDesk reported that the proposal carries no date for activation and would need an amendment to Zcash's network rules. In the meantime, ZCG keeps receiving about 144 ZEC daily. Holders and project teams can follow the draft on GitHub and the committee's dashboard to see how balances and commitments develop.

Several questions remain open. Neither Cointelegraph nor CoinDesk reported a response from ZCG's committee. It is also unclear how the 12% program, which Bowe wants to keep, will factor into the discussion. Because the treasury is mostly ZEC, the number of years it covers will move with the coin's price.

FAQ

What does Sean Bowe's Zcash proposal do?

It would stop the automatic allocation of 8% of newly created ZEC to Zcash Community Grants and redirect it to the Network Sustainability Mechanism. According to CoinDesk, ZCG would retain what it already holds and could still fund grants from those assets.

How big is the Zcash Community Grants treasury?

Bowe cites more than $125 million. CoinDesk reported that his figure is $125.3 million after grant commitments, using an illustrative ZEC price of $1,300. Cointelegraph put the ZEC holdings alone at about $111 million at press time.

Has the Zcash grants proposal been adopted?

No. CoinDesk reported that the draft carries no date for activation and would need an amendment to Zcash's network rules. Until then, the committee's allocation continues at about 144 ZEC a day.