Hi @kworks. Thank you for the great questions!
As far as I am aware, neither ZF nor ECC has conducted a public review of ZCG. The closest event resembling such a review was the ZOMG-ZIP 1014 Independent Review Committee that I organized in 2021 in response to concerns raised by Chris Burniske and ML when they left ZOMG. The Review Committee discussions resulted in an amendment to ZIP 1014.
I believe there is overwhelming community support for making ZCG independent. My opinion is based on conversations I’ve had with community members and ecosystem leaders over the years, as well as two forum polls I conducted in 2021 and 2023.
With that being said, even with overwhelming community support, I think if ZCG were to become independent it makes sense to have a slow transition because a gradual shift allows for careful planning and adjustment, minimizing potential disruptions to ZCG’s core function. In addition, I personally believe it is not currently economically feasible for ZCG to become an independent organization given the impact the bear market has had on ZCG’s treasury. As such, the conditions outlined in the ZIP amendment, which consider economic viability and alignment with the interests of the Zcash ecosystem and community sentiment, provide a sensible approach to independence.
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There are three key benefits to making ZCG independent. First, an independent ZCG would enhance the decentralization of the Zcash ecosystem by promoting the presence of additional independent organizations that actively contribute to Zcash.
Second, an independent ZCG would contribute to decentralization of the Dev Fund. Currently, all Dev Fund recipients are US entities, creating a potential single point of failure for Zcash. By having an independent ZCG located outside the US, there’s a safeguard ensuring continued funding for Zcash development even in the event of US regulatory actions.
Lastly, independence allows ZCG to have more control over its decisions and determine its direction and shape as an organization. As a committee under the Zcash Foundation, ZCG’s decision-making is subject to certain limitations. Becoming an independent entity provides ZCG with more autonomy to tailor its strategies to better serve the Zcash ecosystem.
If ZCG were to become independent, it would no longer benefit from the operational and administrative support provided by the Zcash Foundation. Currently, ZF covers the associated costs of administering the ZCG program, including maintaining the grants platform, disbursing funds, tracking open grants, financial reporting, KYC and OFAC compliance, and other administrative tasks related to supporting the grant process. The Zcash Foundation has provided excellent support in these areas. Transitioning to an independent organization would require ZCG to establish its own administrative infrastructure and cover these expenses internally, resulting in increased operational costs and administrative burdens.
Considering that both ECC and ZF are domiciled in the US, if the grants program were to become an independent organization, the ZCG committee believes it should be established in a jurisdiction outside the US in order to encourage geographic decentralization. The specific location would depend on various factors, including legal and regulatory considerations, as well as practical operational requirements. Ideally, it would be based in a country that is crypto friendly and has a strong history of protecting privacy rights.
Regardless of its domicile, the organization should be structured as a non-profit entity with tax exempt status, subject to legally-enforceable governance requirements similar to those required of 501(c)(3) organizations. This ensures strict transparency and accountability standards, and that the organization operates in a manner consistent with its stated mission.
Unfortunately, I don’t have a definitive answer for this question. Currently, administration and support of the ZCG program is integrated into the Zcash Foundation’s operational expenses. The cost for ZCG to operate independently would depend on several factors, including the organization’s domicile, the level of support staff required, and various operational expenses such as administrative, legal, and marketing costs. Providing a precise cost estimate would require a detailed assessment of these factors.