Zcash governance fight centers on whether to keep funding a $125 million treasury
Zcash is approaching its 10th anniversary on Oct. 28 while its community is locked in a widening dispute over how newly minted ZEC should be allocated. The debate accelerated after Zcash co-founder Sean Bowe proposed ending automatic funding for the Zcash Community Grants program, or ZCG, arguing that the grant body already holds more than $125 million and can support development for years without new inflows. His draft would redirect ZCG’s 8% share of block rewards to the Network Sustainability Mechanism, while leaving existing ZCG assets untouched and preserving a separate 12% stream controlled by token holders. That proposal quickly drew sharper responses. Maxime Desalle called for ZCG to be dissolved entirely after honoring existing commitments, with remaining funds moved to the NSM. ZODL founder Josh Swihart argued that cutting only ZCG would not solve the issue and said both ZCG and the token-holder-controlled funding stream should be shut down. Gemini co-founder Tyler Winklevoss also backed ending the broader grant model. On the other side, community contributor Dismad suggested a phased reduction that would keep developer funding in place until 2036. The argument is unfolding as ZEC market activity and institutional interest rise. ZecStats data cited in the report showed stronger price performance, higher transaction activity, and greater use of shielded transfers, while Grayscale’s Zcash product ZCSH had about $708 million in net assets as of Oct. 26.
