Founders should only receive 10% of the first halving and beyond

@daira @zooko

This is great. I think this is what a lot of us ITT were hoping for, and that the 16.5% allocated to investors is much lower than many of us originally thought.

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Thanks for the edit, Daira. Yes. I’m not going to update to the charts, but it should be noted that the Founder’s reward includes more than the investor’s reward. The chart notes the strategic reserve and the non-profit will receive 26.3% of the reward (founder’s), what distinguishes these two projects? Both seem to be a part of advancing z-cash projects. Is the strategic reserve the for-profit component?

I am also interested in the difference between the zcash foundation and the nonprofit. @daira or @zooko any response?

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It would be neat if the nonprofit was going to be used for creating educational tools and non-profit platforms that utilized zcash, I’m guessing the zcash foundation is going to be purely for profit/development/founders?

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Huge respect for the amount of work they already put in, but the percentage of the money supply they are taking is very concerning. Greed can destroy something good very quickly.

The “Zcash Foundation” is the same thing as “the non-profit”.

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Oops. I think we both meant Zcash Co., which is receiving 1.19%

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Sorry, I’m confused too! Is there anything I can clarify beyond what is already stated in Continued Funding and Transparency - Electric Coin Company and Frequently Asked Questions - Zcash ?

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Ha, sorry for not being very clear.

The Zcash Company’s “strategic reserve” will receive 1.19% of the Zcash monetary base (over four years), and is intended to fund new projects to increase the value of the Zcash Company.

and

The non-profit Zcash Foundation will receive 1.44% of the monetary base (over four years). The Foundation will maintain and improve the Zcash protocol in the interests of all users, present and future.

What is the main difference here? What is something that would benefit the Zcash Company but not be in the interests of “all users, present and future” as implied by the allocation of Zcash Foundation reward?

Summed up: Is the Zcash Company meant to benefit the Founder’s only while the Zcash Foundation is meant to benefit users?

I agree this is not a thread disparaging the founders. They are the ones who built the software and open-sourced it. I do not believe anyone here is ungrateful for their work. I just think fully understanding how the organization is setup would be helpful considering we are all putting our own money/labor in to the project.

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Right now founder’s cut is @ $4,326,000,000 based on https://www.bitmex.com/app/contract/ZECZ16

No total marketcap would be
21 mill x $95

2,009,910,000 (2 Billion market cap)

Founder reward would be 400million roughly

800M. The final total is 20% of the supply no 10%. But yes, your exchange rate is correct.

20% of 2 Billion = 400mill of total as stated above

lol. Yes, you are right. Jumped the gun on this one.

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Yes, the Zcash Company is a for-profit company, and it will be focused on increasing value to its shareholders. The Zcash Foundation is a non-profit, which will have a mandate to protect and improve the Zcash protocol for all users.

Now, obviously most things that benefit users also benefit the Zcash Company in some ways! So there is good incentive alignment already between the Company and the broader ecosystem, however that alignment is not perfect.

You asked for an example of something that would benefit the Company but not be in the interests of all users. The first example that comes to mind is that the Zcash Company could get into the business of selling enterprise software to banks. They certainly are extremely interested in the technology, so we’re in a good position if we want to start selling a product based on that technology to them. This could be really valuable to the shareholders in the company.

It wouldn’t necessarily bring a lot of benefit to the users of the open blockchain. Although it might, if we could use the revenue from the enterprise side to build better and better technology that we also open source and everyone can benefit from using it.

But, whether or not that strategy would result in better or worse results for the open community in the long run, it is a valid strategy that the Company could consider taking if it needs the money.

It would not be a valid strategy for the Foundation, which should not do things that come with a risk of potentially not helping the users, or that require non-transparency, or that increase incentive misalignment between the Foundation and the users.

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That’s a misunderstanding. The final FR percentage of the total monetary supply (21M ZEC) is 10%, thus the FR total market cap would be 200M based on the current futures rate.

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@maxi @trolloniex

The Founder’s Reward is only 20% of coins before the first halving. (20% of 10.5m coins = 2.1m coins). After the first halving, founder don’t receive any further coins out of the remaining 10.5m. So, they get 2.1m coins in 4 years, which translates to 10% of ALL coins produced over all of the years. At $95 a coin that’s roughly $200 million.

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@zooko

Thanks for the transparent and interesting bank example. I’ve been very impressed with the uptick in transparency with the release so close :slight_smile: I think we are all very interested to see what the non-profit can do for the community, and would love to see some integration of the outside world into zcash (such as financial institutions).

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This seems as oddly relevant today as it did 3 years ago.

I like this phrasing too.

This whole discussion feels so familiar.

I can see why this whole debate for the 2nd time around has “got to” some of the battle scarred of the first round.

Sure it was a different argument going on back then, but jeez it would be cool if some of these people were still around.

This is interesting… Why didn’t the ECC go down this path?

[I made the text bold not zooko] - Seems pretty different than to todays attitude.

@boxalex beaten to the punch 3 years ago… :stuck_out_tongue:

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