# Decentralization of Power & MGRC funds for another Dev team

**URL:** <https://forum.zcashcommunity.com/t/decentralization-of-power-mgrc-funds-for-another-dev-team/37711>\
**Category:** Community Grants\
**Created:** [November 3, 2020, 7:46pm UTC](https://forum.zcashcommunity.com/t/decentralization-of-power-mgrc-funds-for-another-dev-team/37711 "2020-11-03T19:46:32Z")\
**Posts on this page:** 1\
**Showing post:** 11

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**Author:** ![nathan-at-least](https://sea2.discourse-cdn.com/zcash/user_avatar/forum.zcashcommunity.com/nathan-at-least/32/8_2.png) [@nathan-at-least](https://forum.zcashcommunity.com/u/nathan-at-least)\
**Post date:** [November 3, 2020, 11:17pm UTC](https://forum.zcashcommunity.com/t/decentralization-of-power-mgrc-funds-for-another-dev-team/37711/11 "2020-11-03T23:17:06Z")

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> [@MGRC Update 10-28-2020 and Meeting Minutes](https://forum.zcashcommunity.com/t/mgrc-update-10-28-2020-and-meeting-minutes/37666/13):
>
> we are left to wonder how we ended up with essentially the full subsidy continuing with control by the foundation. doesn’t go to their pockets directly, but having influence over the spending of coins is the same thing as retaining possession

How are we left to wonder? It says right at the beginning of [ZIP 1014](https://zips.z.cash/zip-1014):

> This proposal describes a structure for the Zcash Development Fund, to be enacted in Network Upgrade 4 and last for 4 years. This Dev Fund would consist of 20% of the block subsidies, split into 3 slices:
> 
> - 35% for the Electric Coin Company;
> - 25% for Zcash Foundation (for internal work and grants);
> - 40% for additional “Major Grants” for large-scale long-term projects (administered by the Zcash Foundation, with extra community input and scrutiny).
> 
> Governance and accountability are based on existing entities and legal mechanisms, and increasingly decentralized governance is encouraged.

This is the text of the document that was ratified through more than a year of conversations, plenty of which are on this forum. I have not seen any deviation from this ZIP in the execution of MGRC with ZF’s support. Can you point out any specific deviation?

> [@MGRC Update 10-28-2020 and Meeting Minutes](https://forum.zcashcommunity.com/t/mgrc-update-10-28-2020-and-meeting-minutes/37666/17):
>
> i just want the zip stuck to.

Which part of ZIP 1014 or the conversation around it is not being adhered to?

> [@lawzec](#):
>
> how about setting a large portion of the MRGC allocation to the creation of a company _ **to compete with the ECC.** _

Two questions:

First, how is your proposal different than what the MGRC is already slated to do as per ZIP 1014?

I’m not a lawyer, but I don’t see why a grant recipient couldn’t be a pre-existing company, or establish a company to carry out a grant application.

Second, what do you mean by “compete”?

MGRC and ECC have separate funds, and in fact that provides direct incentive alignment. There could be competition or divergence of vision, and the more discussion around those alternatives, the better for Zcash, IMO.

There could be MGRC grant recipients who aim to do A, while ECC aims to do B where it’s impossible to do both A and B. I expect for most plausible scenarios, though, there will be plans for X and Y and it’s possible to do both, producing more value for Zcash.

For example, the [Thesis proposal](https://forum.zcashcommunity.com/t/mgrc-grant-for-another-dev-team/37711/4) involves making the Zcash network a privacy hub for other assets like BTC & ETH, while ECC is focused on scalability & light wallet improvements.

So as far as I can tell, MGRC is already capable of doing what you’ve proposed, and is also following ZIP 1014. So far I have yet to see any substantive claim that there’s any deviation from the ZIP.

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_[View the full topic](https://forum.zcashcommunity.com/t/decentralization-of-power-mgrc-funds-for-another-dev-team/37711)._