Zcash Cofounder Moves to End Automatic Grants Funding, Citing $125M Treasury

Zcash cofounder Sean Bowe has proposed halting automatic funding for Zcash Community Grants (ZCG), saying the program’s treasury can cover years of spending without new income. The draft, published late Monday, would redirect ZCG’s remaining 8% share of newly created ZEC to the Network Sustainability Mechanism, a reserve intended to support future mining rewards. The funds would remain there for the rest of the grants stream’s current term. ZCG would keep its existing assets and continue making grants from them. ZCG’s dashboard listed about 91,453 ZEC and $8.8 million, including $2.4 million committed to grant recipients. Bowe puts the uncommitted balance at $125.3 million, using an illustrative price of $1,300 per ZEC. Automatic funding is independent of the committee’s existing holdings. At Zcash’s target network pace, ZCG receives roughly 144 ZEC daily, about $68 million a year. The Financial Privacy Foundation, which administers ZCG’s money, reported first-quarter program expenses just above $1.5 million. That equates to about $6 million annually, less than one-tenth of the annual inflow. Dollar values move with ZEC’s price. Bowe estimates that even at $500 per ZEC, the existing treasury could fund about five years of spending, assuming $10 million in annual expenses. A community advisory panel elects ZCG’s five committee members. The committee selects grants without an additional vote by coinholders. A separate funding program receives 12% of newly created ZEC; holders vote on its grants each quarter under participation and approval rules. Bowe proposes keeping that 12% allocation. The draft argues that adding funds to ZCG’s separate custody and governance structure raises risk when substantial reserves already exist. It follows criticism of a ZCG-financed outreach project that demonstrated private payments at an adult-industry convention over the weekend. ZECsy, the team behind the project, sought $550,000 for activities at adult-industry events, cryptocurrency conferences and workshops. Its pitch included helping workers affected by banking restrictions receive payments without revealing personal financial information. The committee authorized startup funding and nine initial milestones worth about $461,500. Photos of ZECsy’s booth at Exxxotica in Edison, New Jersey, circulated on X on Sunday. The committee’s August approval was divided. Committee member Hanh opposed the grant, citing cost concerns and limited evidence of sustained adoption. Other members backed the team’s ability to attract new users. The nine-month funding limit gave the committee a chance to assess results before approving more money. Bowe’s draft does not mention the ZECsy grant and grounds the proposal in ZCG’s reserves and ongoing income. It sets no activation date and requires changes to Zcash’s network rules. ZCG will continue receiving about 144 ZEC daily until a network-rule change takes effect.