Shielded Labs endorses the Community & Coinholder (C&C) Funding Model, which allocates 12% of Zcash block rewards to grants selected by coinholders and 8% to Zcash Community Grants (ZCG). We believe this model represents a balanced approach to funding that empowers coinholders, recognizes the value of existing grant infrastructure, and can be implemented without causing major delays to other key ecosystem priorities.
Shielded Labs has no intention of seeking Dev Fund support. We fund our work independently of block rewards and rely on contributions from Zcash holders and supporters. Nevertheless, we believe the continuation of the Dev Fund is important for the ecosystem. It enables ongoing funding for independent development teams and creates a pathway for organizations like the Electric Coin Company (ECC) and the Zcash Foundation (ZF) to apply for additional support when needed. More broadly, the Dev Fund has played an important role in sustaining core protocol development, supporting new initiatives, and bringing long-term contributors into the Zcash ecosystem.
Our decision to support the C&C model was made in collaboration with ECC and ZF. Over the past month, Josh, Alex, and I met regularly to discuss the merits and drawbacks of the various proposals and evaluate the long-term needs of the ecosystem. Through that process, we aligned on the benefits of the C&C model, particularly its potential to further decentralize funding and its feasibility from an implementation standpoint. The spirit of collaboration has been encouraging and gives me hope that we are entering a new phase of cross-org cooperation that recognizes shared goals and open communication.
One of Shielded Labs’ core values is to honor the holders. We believe ZEC holders should have a voice in shaping Zcash’s direction, and this proposal takes an important step toward making that possible. Under the C&C model, projects are approved by coinholder vote, and funds are disbursed by a three-member multisig that includes Shielded Labs. Over time, we hope coinholders will play a larger role in governance and receive a greater share of the Dev Fund allocation. That said, the infrastructure to support coinholder voting is still in its early stages and remains largely experimental. Broader adoption will take time, and we see this proposal as a practical starting point that can evolve as tools and participation improve.
We also support continued funding for ZCG, which has played a critical role in decentralizing the Zcash ecosystem. Over the years, ZCG has funded a wide range of teams and initiatives and helped bring new contributors into the community. Its work has made the ecosystem more diverse, resilient, and globally distributed. The Zcash ecosystem today is far less centralized than it was prior to the grants program, and ZCG has been a major catalyst for that change.
Overall, the C&C model preserves the role of ZCG while giving coinholders a direct voice in funding decisions. It strikes a practical balance between existing grant infrastructure and new governance mechanisms, and provides a foundation for continued evolution over time.