# Basics of blockchain economics (and how it should guide protocol changes)

**URL:** <https://forum.zcashcommunity.com/t/basics-of-blockchain-economics-and-how-it-should-guide-protocol-changes/37915>\
**Category:** General\
**Created:** [December 8, 2020, 3:22pm UTC](https://forum.zcashcommunity.com/t/basics-of-blockchain-economics-and-how-it-should-guide-protocol-changes/37915 "2020-12-08T15:22:00Z")\
**Posts on this page:** 1\
**Showing post:** 7

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**Author:** ![secparam](https://sea2.discourse-cdn.com/zcash/user_avatar/forum.zcashcommunity.com/secparam/32/17461_2.png) [@secparam](https://forum.zcashcommunity.com/u/secparam)\
**Post date:** [December 9, 2020, 12:43am UTC](https://forum.zcashcommunity.com/t/basics-of-blockchain-economics-and-how-it-should-guide-protocol-changes/37915/7 "2020-12-09T00:43:44Z")

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> [@holmesworcester](#):
>
> Well, the user who wants privacy is in a legitimate pinch then, because on the one hand the tax reduces the anonymity set, and on the other _not_ having the tax reduces resources for improving the system’s privacy.

I think its fine we have a dev fund, indeed necessary. But its a necessary evil specifically for privacy if Zooko’s economic view holds. And we should keep that in mind.

> [@holmesworcester](#):
>
> But even given this reality, there’s still alignment in that if ZF and ECC know the way to increase their funding level is to increase the number of people who want to hold shielded Zcash, they’ll have to make holding shielded Zcash really attractive to privacy-seeking users.

I agree. But that seems to imply that if ZF and ECC could, for example, let more users on the zcash chain even if they didn’t pay the same tax/dev fee/ whatever we want to call it, then we should do that. And in fact privacy critical zcash users should be happy about that. They’d be getting more privacy for the same price! Do you agree?

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