Zcash began operations in 2015 after some rounds of private investment, and to support future developments, chose to use a mechanism called Founders Reward (FR) which is essentially a kind of halving.
Basically, the FR subtracts 20% of the reward from each block by dividing it among the founders, developers and investors of Zcash.
Zcash Use a mechanism of proof of work to validate blocks and currently each block has a reward of 12.5 ZEC for the miner who finds the nonce. This method of financing has always caused many controversies, since it is essentially a fee paid by the miners which ends primarily in the pockets of the founders and employees of Electric Coin Company (ECC), which created and supports the development protocol. and adoption of the privacy currency.
The Zcash Foundation (ZC), on the other hand, is a non-profit organization which focuses on financial privacy, whose mission is to create an Internet payment and privacy infrastructure for the public good.
Despite the controversial founders reward, Zooko Wilcox's confidence in privacy coin technology has generated a continuing interest from miners, which has resulted in a constant hashrate increase and, therefore, of network security.
The next Zcash halving is scheduled for October of this year
The problem is that Zcash's halving, which will bring the block's reward to 6.25 ZEC, is expected in October and with it the Founder's Reward will expire. Due in part to an uncertain market in 2019, which has already led ECC to request a dilution of the FR award, Zcash's development will soon be without funds to finance research in terms of engineering, regulatory commitment and adoption, as it has done until now.
Therefore, the Zcash Foundation and ECC are committed to finding a solution to the problem, but this time they avoid making a decision as a team and involving Zcash users. Since the beginning of 2019, the Zcash Community has been actively discussing 13 separate proposals on how to proceed to support operations, marking a substantial step forward in decentralized and self-sufficient government of the cryptocurrency.
The different proposals coincide in the continuation of the Founder's Reward even after halving, although they share the reward in a different way.
Here is a summary of the main ZIP (Zcash improvement proposal):
- ZIP 1013: 10% to ECC, 10% to ZF;
- ZIP 1012: development fund for ECC + ZF + project grants;
- ZIP 1010: commit the development fund proposal with various sources of financing.
These proposals delineate a clear feeling of a more responsible and decentralized Zcash development community. On January 21, will be held on Hangout of the Zcash Protocol, where the team and anyone who wants to register can publicly discuss the proposals to maintain the development of the cryptocurrency protocol and ecosystem.
Zooko Wilcox has several reasons to be optimistic about Zcash's future.
Zooko Wilcox (ECC CEO) and the team behind Zcash are very positive about Zcash's future and, in a 2-hour ECC videoThey explained why Zcash could play a very important role in medium and long-term digital payments.
This especially taking into account the ambitious roadmap of the project that aims to become a means of payment for one billion people that guarantees privacy, the constant development of engineering (which has already led to important discoveries not only for blockchain, how Halo), legality, adoption and investigation. in first and second level scaling.