Zcash Grants Group Offers $46M Amid Governance Backlash
Zcash Community Grants (ZCG) has proposed redirecting approximately $46 million in Zcash tokens from its treasury to future block rewards, but industry figures have criticized the move, demanding greater accountability for the fund.
On Thursday, ZCG proposed transferring 36,200 ZEC from its treasury of roughly 91,500 ZEC to the Network Sustainability Mechanism (NSM), which reserves coins for future mining rewards. If approved, the committee would retain approximately 55,200 ZEC, worth about $70 million at the time of writing. They also suggested forgoing approximately 62,000 ZEC ($78.5 million) in future allocations and tapering their remaining funding until 2032. These changes would redirect around 98,000 ZEC (about $124 million) toward future block rewards.
Under the current arrangement, ZCG’s automatic allocation is scheduled to end in 2028. Their proposed alternative would extend reduced funding for an additional four years. ZCG stated that this plan is preliminary, with a full proposal to follow for community consideration.
Helius co-founder and CEO Mert Mumtaz criticized the proposal, calling it “nowhere near good enough” and arguing that the treasury is already too large. He also questioned the committee’s accountability after a ZCG member unfollowed him on X, stating that such behavior makes someone unqualified to oversee $110 million.
Gemini co-founder Tyler Winklevoss also voiced his concerns, questioning the committee’s accountability, echoed by Zoltan Vardai's recent article on HYPE's potential all-time high.
This criticism follows Zcash co-founder Sean Bowe’s earlier proposal to end ZCG’s automatic 8% share of newly issued ZEC and redirect it to the NSM while leaving the existing treasury untouched.
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