Zcash Community Grants proposes $124 million shift to mining rewards

Zcash Community Grants (ZCG) has introduced a proposal to redirect approximately $124 million in Zcash tokens toward mining rewards to bolster network sustainability. The plan involves transferring 36,200 ZEC, valued at roughly $46 million, from the current treasury into the Network Sustainability Mechanism (NSM). Additionally, the committee proposes foregoing 62,000 ZEC, worth about $78.5 million, in future token allocations.

Under this proposal, the committee would gradually reduce its funding over the next eight years, extending the allocation period to 2032. While ZCG describes the plan as a way to secure ongoing funding for miners, the initiative has faced criticism from industry figures. Critics, including Helius CEO Mert Mumtaz and Gemini co-founder Tyler Winklevoss, have raised concerns regarding fund transparency, the size of the ZCG treasury, and the need for greater accountability to ZEC holders.