@mistfpga, you’re correct. Put otherwise:
- ECC gets 35% and its excess ZEC starts going into its Volatility Reserve when ZEC price surpasses $91 (
=700000/(21000000/4/48*0.2*0.35) - Zfnd-GU gets 25% and its excess ZEC starts going into its Volatility Reserve when ZEC price surpasses $128 (
=700000/(21000000/4/48*0.2*0.25) - Zfnd-MG gets 40% and its excess ZEC starts going into its Volatility Reserve when ZEC price surpasses $80 (
=700000/(21000000/4/48*0.2*0.40)
So as ZECUSD goes up, Zfnd-MG gets the fastest USD increase, and once it reaches $700k/month, the fastest increase in Volatility Reserve (and thus increase in runway and withdrawal opportunities). ECC gets the second-largest such increase, and Zfnd-GU the least such increase.
(An alternative is to make the Funding Target be proportional to the coin percentages, i.e., have equal ZECUSD threshold for all three slices. This would not substantially affect ECC, but would change the allocation for the Zfnd-GU vs. Zfnd-MG slices at at high coin prices.)
So what happens to the extra zec over this time? were does it live and how does the ECC claim it
ECC and Zfnd maintain their Volatility Reserves in separate accounts they hold, which they’re allowed to withdraw from only under specified conditions. Quoting the ZF-revised proposal:
[…] the excess over the Funding Target will be put into a dedicated Volatility Reserve account by the funds’ recipient.
Funds may be withdrawn from the Volatility Reserve account only by that same party, in months where the aforementioned monthly ZEC value falls short of the Funding Target, and only to the extent needed to cover that shortfall. […]
The Funding Target may be changed only by unanimous agreement of ZF, ECC, and the majority vote of the Community Advisory Panel. (In case of excessive accumulation of reserves, the community can condition an increase of the Funding Target on the redirection of some of the reserves to a different entity, miners or an airdrop).
Dev Fund ZEC that has been received, not placed in the Volatility Reserve, and has not yet been used or disbursed, will be kept by the corresponding party (as ZEC, or sold and invested) for later use under the terms of the corresponding slice.
Irrevocable obligations to the above must be made by the recipients (e.g., using their Operating Agreements or by receiving the slice as Restricted Funds).
what about MG recipients?
Major Grant recipients won’t be directly subject to the Funding Target. The Foundation-managed Volatility Reserve will, in effect, form a large long-term “endowment” pool (h/t @ttmariemia) that cushions the volatility for the various grantees, so grantees can focus on their work instead of hedging short-term price risks.
Similarly, the Major Grants would need to be denominated in USD (as they already are in the updated grant program), to ensure that they can be paid. (If they were specified in USD ZEC, a spike in ZEC price could cause the USD value to exceed the Funding Target.)