Accountability First Governance

TLDR:
Zcash now operates at a 9-figure funding scale, but verification standards have not kept pace. I am proposing one rule for any entity holding over $5M for more than 12 months. They provide either an annual audit or quarterly read-only reporting. This improves accountability without changing who votes or how governance works. It works with ZCAP, THV, or any future model. Clear rules first, structural change later. ShieldOrder for ZCG (December 2025) - #37 by ShieldOrder

Accountability First Governance

Over the past week, the forum has had several overlapping discussions on governance structure, ZCAP, THV, conflicts of interest, and forum culture. These conversations are valuable, but share an underlying frustration: uncertainty about oversight of substantial community allocations.

Rather than debating who votes or where discussions happen, I want to propose one architectural improvement that works regardless of the voting mechanism we use now or in the future.

Funding Scale Has Changed, Verification Standards Have Not

ZCG manages an 8% block subsidy under ZIP 1014. The new lockbox configuration adds a separate long-horizon pool. Combined, the ecosystem is stewarding a nine-figure runway.

At this scale, the difference between informal visibility and formal verification becomes material. Every major treasury operating at this magnitude uses written, uniform verification rules. ZCG has not yet adopted such rules.

This is the gap we can close immediately without restructuring governance.

A Simple, Uniform Verification Rule

I propose a standing requirement for entities holding community funds above a materiality threshold.

If an organization holds more than $5M equivalent of community funds for longer than 12 months, it provides one of two proofs:

A. Annual independent financial audit
or
B. Narrow read-only reporting
A quarterly balance and cost table aligned to approved categories, with no spending authority and no operational intrusion.

This is not bureaucracy. It does not change who controls funds or alter governance structures. It aligns oversight with scale.

A 5 million threshold excludes small grants but covers major multiyear allocations. The twelve-month window distinguishes long-horizon custody from active project execution.

Why This Matters Now

Recent debates about conflicts, revolving doors, and voting mechanisms point to the same root cause: lack of systematic verification for large custodians over time.

A uniform rule solves this directly.

• Reduces need for case-by-case scrutiny;
• Removes personality from oversight;
• Avoids politicizing individual grantees;
• Makes long-horizon commitments easier to assess; and
• Works with ZCAP, THV, or any future governance model

This addresses accountability concerns without presupposing that specific problems exist today. It is preventive governance, not accusatory governance.

How This Complements Existing Processes

This does not replace committee judgment, milestone reviews, or grant structuring. It adds a baseline verification layer that makes those processes easier, more predictable, and less adversarial.

It separates two things that are currently blended.

  1. Grant evaluation, which covers impact, clarity, alignment, deliverability, and verification

  2. Long-term custody verification, which is addressed by the rule above

ZCG handles the first. The proposed rule strengthens the second.

My Grant Evaluation Framework

For grants, five consistent tests.

• Impact, measurable change in adoption, resilience, or capability;
• Clarity, milestones defined well enough to verify without interpretation;
• Alignment, reinforcement of core privacy and decentralization principles;
• Deliverability, credible sequencing and resourcing; and
• Verification, obvious success and drift signals.

I have publicly applied this to Brave, ZGo, and deterministic builds so voters can see how I evaluate these decisions. ZCG Nominations Now Open! - #61 by ShieldOrder and Zcash 90-Day Global Privacy Campaign via Brave — Dec 2025 through Feb 2026 - #5 by ShieldOrder

A Practical Path Forward

This proposal requires no ZIP changes, no governance overhaul, and no disruption to ongoing work. It is a scale-appropriate improvement that brings ZCG into alignment with common practice in other treasuries.

If elected, I will advocate for this verification rule with open discussion on threshold and implementation details.

Accountability first. Voting mechanism second.
Clear rules before structural change.

This is a practical path to long-term trust and effective oversight.

I assume you are aware of the always available and constantly updated Zcash Community Grants dashboard of holdings and commitments?

It’s posted weekly with the Zcash Community Grants meeting minutes

1 Like

Thanks Shawn. Yes, I am familiar with the dashboard and I use it. It gives a clear view of ZCG balances, commitments, and available runway, and that visibility is important for planning and for users who want to understand allocation status.

The proposal I put forward concerns a different layer. It applies only when an entity holds more than five million equivalent of community funds for longer than twelve months. In those cases, introduces a minimal proof‑of‑custody check. Either an annual audit or a narrow read-only view that shows quarterly balances and cost categories.

The dashboard provides allocation level visibility. The rule concerns custody verification over time. These are separate surfaces in the process.

ZCG allocates. Custodians execute. The verification layer sits above both without changing their roles.

I’m not sure I follow. How many different custodians do you think hold community funds that this accounting rule would apply to?

The custodian of ZCG funds and the Community Lockbox has been (historically) the Zcash Foundation and more recently @FPF since @ZCG moved under them.

So are you asking for more accounting regarding the funds FPF holds on behalf of ZCG?

You’re right. Under the current $5M and 12 threshold, this would only apply to the Foundation today. No external custodian is anywhere near that scale at the moment.

The aim is not to add new reporting work under the current footprint. The dashboards and audited financials cover the present setup. The proposal formalizes the verification path.

What I am proposing is a forward-looking guardrail. As the scale or duration of any custodial role grows, the verification layer should grow with it. That applies to any entity that might take on long-horizon custody in the future, and it sets a clear expectation for how oversight should evolve as the overall treasury footprint increases.

If it helps avoid confusion, I am open to tightening the wording or adjusting the threshold. The point is simply to keep verification proportional to the amount of funding under custody so that oversight stays aligned with financial scale.

One clarification on the “extra accounting” point.
Under the current topology the rule would apply to FPF because they are the primary custodian above the threshold. It does not prescribe extra work or a specific mechanism. It simply sets the expectation that long-horizon custody at scale is paired with either an annual audit or a narrow read-only balance view, so verification stays proportional to the amount held.

Restating scope amid wider governance discussions on ZCG elections, ZCAP, and coinholder voting.

The 5M and 12 month verification rule is mechanism neutral. It applies under ZCAP, coinholder polling, or any future ZIP defined model. It does not change who votes or how votes are tallied. It sets a uniform expectation for long-horizon custodians.

Allocation visibility and custody verification are separate surfaces. The rule formalizes the latter at the scale we already operate.

Whether the community keeps the current model, improves coinholder polling UX, or adopts a different structure through the ZIP process before 2028, the objective stays the same: proportional oversight for any custodian above a material threshold.

Details remain in the opening post.