1Zcash co-founder Sean Bowe proposed ending automatic funding for the Zcash Community Grants program.
2The proposal suggests redirecting the remaining 8 percent share of block subsidies to the Network Sustainability Mechanism.
3Bowe noted that the grants program currently holds over 125 million dollars in funding.
4The existing allocation model could yield over 68 million dollars in ZEC annually, which significantly exceeds reported expenses.
5The proposal is not part of the current NU7 upgrade and would require a future network upgrade to take effect.
Key takeaway
A Zcash co-founder has proposed redirecting automatic grant funding to the network sustainability mechanism due to a large existing treasury, though any changes require a future network upgrade.
Short-term impact (days–weeks)
● NEUTRAL
Prices may remain stable as the proposal requires a future network upgrade to take effect.
Medium-term impact (1–3 months)
● NEUTRAL
Discussions and community feedback regarding treasury management could influence sentiment over the coming months.
Key risks
Uncertainty regarding community consensus and governance approval.
Potential delays in implementing the required future network upgrade.
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