Hello all,
ECC is paying attention to the discussions and proposals regarding post-Founders’ Reward development funding. As a result, we’ve collected all of the main proposals & sentiments. Most of these comments have come from The future of Zcash in the year 2020.
I think the best focus for the discussion on this thread is to move towards formalized proposals for any consensus-critical changes into draft-ZIPs for NU4 (deadline August 31st). To sketch out a proposal, feel free to use what’s on this collection or other ideas that aren’t included. The main thing I’d like to avoid is duplicating what’s already being discussed in the “future of Zcash” thread.
Finally, while voting/decision mechanisms are also an important component to this, let’s keep those discussions in a separate thread to stay focused.
Here’s what was collected:
Funding proposals
Blockchain funding
Continue PoW block reward
- Dev fund only for R&D/marketing (no early investors/Founders payouts)
- 10% ongoing
Simply, I would propose post-2020 halving (and end of Founders’ Reward) a new development fund is created and given 10% of the block reward. Source
- 20% until next halving or two
20% split between company and foundation for years 5-8. Source
- Ongoing with tapering effect
funding rewards should remain but taper lower with each halving. Perhaps an adjustable rewards that pegs on USD rather than ZEC. This adds several benefits in terms of the good faith of the user-base imo. Source
- Miner opt-in
- Enable miners to offer their share of mining rewards to devs. So, it is up-to miners.
- Introduce dev transaction fee (split mining fee into two), and/or give miners the power to disable it. Source
- ZIP-based funding
Explore ZIP based funding (in other words milestone based) with unlocking majority of funds when ZIP implementations are deployed. Authors, implementors and everyone involved should get rewards per ZIP. Rewards could be proportional to value and impact of those ZIPs. Example: “fully shielded”, “succinct blockchain” etc., All of this can be enabled by users and miners who run zcash. Makes perfect alignment b/n users, miners and dev. Source
- Either as split between ECC and Zcash Foundation, send only to ECC or send only to Foundation for management)
- Foundation to collect + manage dev fund
Right, but what if the Foundation was the recipient of the new dev fund and then entered into contracts with ECC (and others) to continue research and development? I agree that “decentralization” of the dev fund recipients is of paramount importance with multiple developers/orgs so as not to be solely reliant on ECC. It’s then up to good governance to ensure the Foundation doesn’t become evil and allocates the funds strategically. Source
- ECC to collect + manage dev fund
I believe it’s absolutely necessary to continue funding the ECC past the expiring Founders Reward. Source
- Split distribution to ECC and Zcash Foundation
split between company and foundation for years 5-8. Source
Switch to a different Mining algorithm
- PoS
I think we would be well served in 2020 (when the FR expires) to replace the 20% Zcash Founders’ Reward subsidy with a 20% PoS subsidy. I think this is a simple solution that continues to enrich ECC/ZFND/Founders (by right of their already large stakes) but also would spread some reward to the community. Source
- Hybrid algorithm
Make a hybrid consensus adjustment. Either Asic-POS if Bitmain/Innosilicon agree to “fund” development or GPU-POS if they refuse. Source
Transaction fees
- New developer transaction fee
Introduce dev transaction fee (split mining fee into two), and/or give miners the power to disable it. Source
- Existing transaction fees
wouldn’t it make more sense to tie it to transaction fees? This would seem to be a lot more inline with the continued success of zec because even when the block rewards run out there will still be development funds available. Source
(Note on practicality)
The transaction fees for the last 24 hours are $91.8 from all transactions
resource: onchainfx Source
Miscellaneous
Solicit community for funding donations for 5 year runway. Start asap and if full funding is not reached by X date, all donations returned and funding reward remains. If reached, funding ends. Source
Discontinue block reward funding
Alternative funding models
- Community funded development via ZF Grants or similar
a.
How about a Monero FFS like scheme? The basic infrastructure is already set up and could be tweaked to facilitate it. Proposals are put up for funding and ZEC holders either fund or reject them. I find it also to be a more fair funding system for all ZEC stakeholders. Source
b.
With Github Sponsors, there is no need for any kind of dev fund. Interested parties/individuals can fund particular ZIPs they are interested/invested in. GitHub launches Sponsors, a Patreon-style funding tool for developers - The Verge The future of Zcash in the year 2020 - #166 by dontbeevil
- ECC takes on VC investment to fund company activity
Sell a stake of Zcash to someone willing to invest. Source
- ECC creates a side business to fund development
a.
Wallets (workers) with dev fee
b.
payment in the browser (extensions) with a dev fee
c.
The company enters into a contract or organizes the exchange service zcash for currency for everyone (yes, this is an exchange or exchange), from which it receives a percentage. Source
d.
Transition to an electric coin mining company. The future of Zcash in the year 2020 - #174 by jmsjsph
General sentiments
As to the theme of the thread I am strongly in favour of creating a dev fund as a % of the block reward to fund continued development of the protocol post 2020. Source
I’m general I’m ok with extending the founder’s reward to pay for future development. Zcash seems to be considered on the leading edge of crypto privacy and that’s something I want to embrace and continue. Source
Last, in terms of funding, I think we should have a community governance panel vote to extend paying developers for their work past 2020. Source
I am a zcash believer, and i believe that zcash market cap should be top 3 by the end of 2020, which means zcash team should have enough cash out during the next bull market, and the cash should be enough for the next 5-10 years. Source
Instead of cutting PR/Marketing spend some more. Source
it should be a new development fund and explicitly not an extension of the current Fouunder’s reward. It would start only after the existing Founders reward ends. Source
I would think 100% allocation to core development might be the only way to sell this while minimizing the risk of tainting the ethos of the project. Source
What are the realistic operating costs for post founders reward? Source