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Sean Bowe, co-founder of the privacy-focused cryptocurrency Zcash, has proposed ending the automatic funding of the Zcash Community Grants (ZCG) program. He argues that the grant program’s treasury already holds sufficient funds to support ongoing projects.
Bowe insists that the 8% portion of ZEC block rewards currently allocated to grants should be redirected to the network’s resilience reserve. The ZCG program has already received over $125 million, and several more million dollars will flow in before the funding stream stops.
“The program was not originally designed to handle this volume of funds,” Bowe explained.
Zcash Community Grants is a program that funds independent projects developing the Zcash ecosystem. The millions of dollars raised support developer teams and researchers whose initiatives improve blockchain privacy, usability, expand tooling, or strengthen the community.
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Bowe published a draft proposal on GitHub. According to the document, the block subsidy share should be directed to the Network Sustainability Mechanism until the current funding period concludes in 2028. This mechanism involves removing ZEC from circulation, with gradual returns distributed through future block rewards.
Earlier in September, Haseeb Qureshi, managing partner at crypto fund Dragonfly, also called for the end of the Zcash developer fund once its funding term expires. He expressed concerns that as the fund’s assets approach $100 million, it “may become subject to politicization.”
The program currently holds 91,453 ZEC and $8.8 million in fiat funds. Unfulfilled grant obligations total $2.4 million. At current market prices, the ZEC reserves are valued at approximately $111 million. According to ZecStats, a separate network development reserve holds 72,351 ZEC—worth about $89 million.
Zach Pandl, head of research at Grayscale, previously stated that the rise of artificial intelligence is increasing attention on personal and financial data privacy. The privacy coin Zcash can assist investors, the analyst believes.
