Zcash co-founder proposes terminating ZCG automatic funding allocation, remaining 8% block subsidy to be transferred to NSM.

BlockBeats news, October 27 — Zcash co-founder Sean Bowe on October 26 published a ZIP draft titled "Terminate ZCG funding stream in favor of NSM," proposing to end the Zcash Community Grants (ZCG) automatic block subsidy funding stream and redirect the remaining 8% block subsidy share to the Network Sustainability Mechanism (NSM) until the original funding stream expires.

The draft states that ZCG has accumulated sufficient resources to continue funding community projects and no longer needs to automatically receive block subsidies. According to data cited in the proposal, ZCG holds approximately 91,452.98 ZEC, plus approximately $8.7962 million in USD assets, while carrying approximately $2.4172 million in outstanding grant liabilities.

Assuming a ZEC price of $1,300, after deducting the above liabilities, the related net asset value is approximately $125.3 million. These figures come from relevant public dashboards and have not been independently verified.

If the proposal is implemented, the adjustment would only affect future block subsidy allocation: ZCG's existing assets and their management rules remain unchanged, and the Coinholder-Controlled Fund's existing 12% block subsidy share and duration are also unaffected.

Funds redirected to NSM would be deducted from new issuance and credited directly to the NSM fund, with subsequent handling determined by NSM's own rules. The proposal is currently still in Draft stage, has not specified mainnet and testnet activation heights, and has not been included in the currently planned NU7 network upgrade.