Zcash Community Grants Committee Withdraws Proposal for 98,000 ZEC Funding Adjustment, Community Governance Dispute Continues

on November 4, the Zcash Community Grants (ZCG) withdrew a proposal to redirect approximately 98,000 ZEC toward future miner rewards. The proposal, introduced on October 29, aimed to adjust the allocation of community funds. However, following community backlash, the committee announced on November 3 that it would drop the initiative and stated that future funding adjustments should adhere to Zcash's existing governance processes.

Under the original proposal, ZCG had planned to transfer 36,200 ZEC from its roughly 91,500 ZEC reserve into the Network Sustainability Mechanism to gradually supplement miner block rewards, while reducing its projected fund allocations before the 2028 halving from approximately 109,000 ZEC to 47,000 ZEC.

The controversy stems from concerns over ZCG's fund allocation and accountability. The five-member committee currently receives 8% of newly issued ZEC annually, amounting to approximately 144 coins per day, without requiring token holder approval for each expenditure. Earlier, a ZCG-funded project called ZECsy promoted privacy payments at an adult industry trade show in New Jersey, which sparked community doubts regarding the appropriateness of how the funds were being used.

Currently, alternative funding reform proposals are circulating within the community, including completely eliminating ZCG's automatic funding stream, diverting a portion of the funds to reserves while establishing new development and legal defense funds, and retaining the 8% allocation but shifting the focus of grants. None of these options have been approved yet. Until a network upgrade alters the protocol rules, ZCG will continue to receive approximately 144 ZEC per day.