# Future of Zcash dev funding — high signal, low noise

**URL:** <https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-high-signal-low-noise/34179>\
**Category:** protocol\
**Created:** [July 18, 2019, 10:16pm UTC](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-high-signal-low-noise/34179 "2019-07-18T22:16:18Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![sonya](https://sea2.discourse-cdn.com/zcash/user_avatar/forum.zcashcommunity.com/sonya/32/9518_2.png) [@sonya](https://forum.zcashcommunity.com/u/sonya)\
**Post date:** [July 18, 2019, 10:16pm UTC](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-high-signal-low-noise/34179/1 "2019-07-18T22:16:18Z")

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**Final edit: This forum thread is now deprecated! Please refer to the [ZIP process website](https://zips.z.cash/) and the Zcash Foundation’s [governance page](https://www.zfnd.org/governance/) for future information and updates. Forum discussion will continue in the [protocol subcategory](https://forum.zcashcommunity.com/c/community-collaboration/protocol/23).**

**To see past edits of this post:**

 ![Screen Shot 2019-12-16 at 9.33.26 PM](https://global.discourse-cdn.com/zcash/original/2X/d/df415f5e2e9775d0ac6e60fb64ac400751e34eb1.png)

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This thread will remain locked. It’s intended as a reference, not a discussion venue. It will be updated whenever we (the Zcash community) move the ball forward.

For details and discussion, [consult the megathread](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063).

**Note: the merged ZIPs include some editorial changes. They supercede both the original pull requests, and the draft proposals on the forum threads. If you are a ZIP author and see a change that doesn’t reflect your intent, please contact @daira.**

## Draft ZIPs

- [Keep the block distribution as initally defined. 90% to miners](https://forum.zcashcommunity.com/t/zip-proposal-keep-the-block-distribution-as-initaly-defined-90-to-miners/33843)

- [A genuine opt-in protocol level, development donation option](https://forum.zcashcommunity.com/t/zip-proposal-a-genuine-opt-in-protocol-level-development-donation-option/33846)

- [20% split between the ECC and the Foundation, and a Voting System Mandate](https://forum.zcashcommunity.com/t/dev-fund-proposal-20-split-between-the-ecc-and-the-foundation/33862)

- [Miner Directed Dev Fund (was: 20% to any combination of ECC, Zfnd, Parity, or “burn”)](https://forum.zcashcommunity.com/t/dev-fund-proposal-miner-directed-dev-fund-was-20-to-any-combination-of-ecc-zfnd-parity-or-burn/33864)

- [ZIP proposal: ZCFS (Zcash Community Funding System)](https://forum.zcashcommunity.com/t/zip-proposal-zcfs-zcash-community-funding-system/33898)

- [Blocktown Development Fund Proposal: 10% to a 2-of-3 multisig with community involved Third Entity](https://forum.zcashcommunity.com/t/blocktown-development-fund-proposal-10-to-a-2-of-3-multisig-with-community-involved-third-entity/34782)

- [Dev Fund Supplemental Proposal: enforce devfund commitments with legal charter](https://forum.zcashcommunity.com/t/dev-fund-supplemental-proposal-enforce-devfund-commitments-with-legal-charter/34709)

- [Kek’s proposal: fund ECC for 2 more years](https://forum.zcashcommunity.com/t/kek-s-proposal-fund-ecc-for-2-more-years/34778)

- [Five-Entity Strategic Council](https://forum.zcashcommunity.com/t/dev-fund-proposal-strategic-council-approach/34801)

- [A Grand Compromise/Synthesis ZIP Proposal](https://forum.zcashcommunity.com/t/a-grand-compromise-synthesis-zip-proposal/34812)

- [Decentralizing the Dev Fee](https://forum.zcashcommunity.com/t/decentralizing-the-dev-fee/35252)

- [Dev Fund to ECC + Zfnd + Major Grants](https://forum.zcashcommunity.com/t/dev-fund-proposal-dev-fund-to-ecc-zfnd-major-grants/35364)

- [Keep It Simple, Zcashers: 10% to ECC, 10% to ZF](https://forum.zcashcommunity.com/t/zip-keep-it-simple-zcashers-kisz-10-to-ecc-10-to-zfnd/35425)

## ZIP Process

ZIP = Zcash Improvement Proposal

Writing and submitting a ZIP is how you formally suggest changes to the Zcash protocol, or a decision about Zcash’s future that you want to be recognized and recorded.

> [@Future of Zcash dev funding — megathread / everything in one place](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/1):
>
> After forum discussion, the next step is creating and submitting a formal Zcash Improvement Proposal. **The ZIP process is defined in [ZIP 0](https://zips.z.cash/zip-0000).**
> 
> - [GitHub repo](https://github.com/zcash/zips)
> - [issues](https://github.com/zcash/zips/issues)
> - [pull requests](https://github.com/zcash/zips/pulls)
> 
> ### Help
> 
> - [Guide to writing your first ZIP](https://zips.z.cash/zip-guide)
> - [ZIP-writing suggestions and examples](https://forum.zcashcommunity.com/t/zip-proposal-8-15-opt-in-or-4-7-5-mandatory-dev-free-75-zcash-foundation-25-ecc/33883/20) by @mistfpga
> - [Proposal authors, please read: Help making ZIPs](https://forum.zcashcommunity.com/t/proposal-authors-please-read-help-making-zips/34198) by @nathan-at-least
> 
> ### [NU4 deadlines](https://github.com/zcash/zips#deadlines-for-nu4):
> 
> | Event | Date |
> | --- | --- |
> | ZIP draft submission deadline | Aug 31, 2019 |
> | Feature selection done | October 31, 2019 |
> | Testnet beta code release | March 31, 2020 |
> | Testnet activation | May 31, 2020 |
> | Mainnet activation | October 2020 |
> 
> **Proposals for NU4 must be submitted as draft ZIPs by August 31.**
> 
> The active ZIP editors are @daira, representing the Electric Coin Company, and [George Tankersley](https://github.com/gtank), representing the Zcash Foundation.

---

<div class="post-metadata">

**Author:** ![sonya](https://sea2.discourse-cdn.com/zcash/user_avatar/forum.zcashcommunity.com/sonya/32/9518_2.png) [@sonya](https://forum.zcashcommunity.com/u/sonya)\
**Post date:** [July 19, 2019, 9:01pm UTC](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-high-signal-low-noise/34179/4 "2019-07-19T21:01:35Z")

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## Megathread Summary

We collectively discussed ECC and ZF public statements on various proposals, addressing concerns about possible favoritism.

- ECC employee responses: [1](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/14), [2](https://forum.zcashcommunity.com/t/zip-proposal-8-15-opt-in-or-4-7-5-mandatory-dev-free-75-zcash-foundation-25-ecc/33883/24), [3](https://forum.zcashcommunity.com/t/zip-proposal-8-15-opt-in-or-4-7-5-mandatory-dev-free-75-zcash-foundation-25-ecc/33883/34), [4](https://forum.zcashcommunity.com/t/zip-proposal-8-15-opt-in-or-4-7-5-mandatory-dev-free-75-zcash-foundation-25-ecc/33883/35), [5](https://forum.zcashcommunity.com/t/zip-proposal-8-15-opt-in-or-4-7-5-mandatory-dev-free-75-zcash-foundation-25-ecc/33883/36)
- ZF employee responses: [1](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/20), [2](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/29), [3](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/33)

Please note that statements by individual employees of ECC or ZF are not _necessarily_ the official positions of either organization.

* * *

> [@Future of Zcash dev funding — megathread / everything in one place](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/40):
>
> Official announcement: No later than August 6, the Zcash Foundation will release a detailed evaluation of community proposals for sustainable Zcash development. @acityinohio will explain the Foundation’s current thinking and plans for structuring community feedback.

* * *

[My suggestions](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063/41) for combining several sets of similar proposals into single ZIPs.

* * *

ZIP guidance from @nathan-at-least: [Proposal authors, please read: Help making ZIPs](https://forum.zcashcommunity.com/t/proposal-authors-please-read-help-making-zips/34198)

* * *

@sgp is organizing a livestream discussion: [[Livestream Discussion] Future of Zcash block reward](https://forum.zcashcommunity.com/t/livestream-discussion-future-of-zcash-block-reward/34247/1)

> [@\[Livestream Discussion\] Future of Zcash block reward](https://forum.zcashcommunity.com/t/livestream-discussion-future-of-zcash-block-reward/34247/1):
>
> I would like to invite Zcash community stakeholders to participate in a livestreamed video discussion on the future of Zcash’s block reward after ~November 2020. I have prepared a sophisticated financial model, so we can test various burn rates, block reward rates, and price volatility for different entities. Example entities could include the Electric Coin Company and Zcash Foundation, which currently receive a portion of the Zcash block reward.

* * *

Sarang Noether raised questions about the different financial scenarios:

> [@Lack of information about future funding](https://forum.zcashcommunity.com/t/lack-of-information-about-future-funding/34267):
>
> Disclaimer: I (Dr. Sarang Noether) am neither a previous nor a current recipient of any Zcash development fee, and I have no financial ties to either the Electric Coin Company or the Zcash Foundation. I am funded through the Monero Community Crowdfunding System to conduct independent cryptographic research. My views are my own, and do not represent those of any other person or group. I see there being two distinct questions regarding ongoing funding, and they should remain separate. Question 1…

(Sarang’s post is a separate thread, outside of the megathread, but highly relevant.)

* * *

I sorted the 13 proposals into Active, Pending, and Inactive categories, based on whether each proposal has an advocate to champion it through the ZIP process.

* * *

@zooko on [Twitter](https://twitter.com/zooko/status/1156241402147115009):

> A catalog of the major results that the Electric Coin Company has delivered to the Zcash community over the last three years: [https://electriccoin.co/blog/animating-zcash/](https://electriccoin.co/blog/animating-zcash/)
> 
> This is in the context of the Zcash community deciding whether the “Strategic Reserve”/“Dev Fund” was a good use of funds.

[PDF timeline](https://electriccoin.co/wp-content/uploads/2019/07/Timeline-FINAL.pdf)

[https://medium.com/@zooko\_25893/a-personal-letter-about-the-possibility-of-a-new-zcash-dev-fund-f6d30df64392](https://medium.com/@zooko_25893/a-personal-letter-about-the-possibility-of-a-new-zcash-dev-fund-f6d30df64392)

> <https://twitter.com/jswihart/status/1156724563197038593>

* * *

People have started [using the hashtag #ZcashDevFund on Twitter](https://twitter.com/hashtag/ZcashDevFund?src=hashtag_click&f=live) to discuss the future of Zcash.

* * *

[ECC published a statement](https://electriccoin.co/blog/electric-coin-company-statement-on-sustainability/) on Zcash dev funding sustainability. In particular, please note these details:

> ECC will release assessments of each proposal submitted to the [Zcash Community site](https://forum.zcashcommunity.com/t/future-of-zcash-dev-funding-megathread-everything-in-one-place/34063). We will first work with authors or champions on these proposals in order to formalize them into PreZips (pre Zcash Improvement Proposals) and ensure they reflect the author’s intent. Proposals might include non-funding mandates, such as [Aristarchus’ mandate for a voting mechanism](https://forum.zcashcommunity.com/t/dev-fund-proposal-20-split-between-the-ecc-and-the-foundation/33862).
> 
> Each PreZip must have a champion who is the author and/or someone willing to advocate for the proposal. The ECC will then draft assessments of each PreZip that will include how its adoption would impact ECC funding, how we believe it would impact the Zcash project, and how the company would likely respond if such proposal was adopted by the community. We are likely to advocate for proposals which would allow ECC (or another organization in its place) to continue the kind of ambitious, strategic and integrated operations that we’ve demonstrated in the first years of Zcash.

* * *

> [@ECC Dev Fund Proposal Assessments](https://forum.zcashcommunity.com/t/ecc-dev-fund-proposal-assessments/34405):
>
> Hi all, It’s amazing to see the diverse Zcash community participating in the conversation about a potential Dev Fund with such zeal. drum Thank you all for participating! Within ECC we’ve been hard at work to clarify our general position with regard to development funding, and to that end we recently posted the [Electric Coin Company Statement on Sustainability](https://electriccoin.co/blog/electric-coin-company-statement-on-sustainability/). My goal with this post is to highlight the timeline and next steps for how ECC plans to engage with the proposal advocates, which i…

* * *

You can watch the livestream discussion hosted by @sgp on YouTube:

[![](https://global.discourse-cdn.com/zcash/original/3X/3/b/3b351f66d9a04f23cab29beb208e5f83d741d211.jpeg "Zcash Block Reward Discussion") ](https://www.youtube.com/watch?v=mCe5CfeSXIw)

* * *

[https://www.zfnd.org/blog/dev-fund-guidance-and-timeline/](https://www.zfnd.org/blog/dev-fund-guidance-and-timeline/)

* * *

> **[A Blank Slate: The Community to Decide its Future](https://electriccoin.co/blog/a-blank-slate-the-community-to-decide-its-future/)**
>
> The Zcash Community is collectively deciding what to do after the current development fund sunsets in 2020 along with the Founder’s Reward. There is broad agreement within the Community…

* * *

> [@Inactive/For reference only:: Dev fund proposal: modified 20% combination; 40/60 ECC/choice](https://forum.zcashcommunity.com/t/inactive-for-reference-only-dev-fund-proposal-modified-20-combination-40-60-ecc-choice/33882/19):
>
> > This implies that the foundation could possibly be the recipient of a mandatory development fee but not the ECC or any other for profit
> 
> Yes. This is our request / requirement for any _mandatory_ dev fund, where the opt-out is “don’t run the software / don’t use Zcash,” rather than “run the software and decide not to contribute to a dev fund.”
> 
> By contrast, with a “miner’s choice” arrangement, the Zcash Foundation is comfortable with for-profit entities directly receiving protocol-based dev funding.

* * *

> **[ECC Initial Assessment of Community Proposals.](https://electriccoin.co/blog/ecc-initial-assessment-of-community-proposals/)**
>
> The Zcash community is making a decision about whether to create a new development fund and use it to hire one or more organizations to work on its behalf. Some of these proposals include the prospect…

* * *

> [@Note about trademark strategy](https://forum.zcashcommunity.com/t/note-about-trademark-strategy/34807/):
>
> Hey Folks: There is a disagreement on strategy about how to manage the Zcash trademark. This post is to make sure you know the current status of the trademark and draw your attention to the strategy questions about how to use it going forward. ECC is currently the owner of the trademark, having created the trademark along with creating Zcash, and registered it in many countries. ECC had previously publicly stated that we would sign the Zcash trademark into a novel legal agreement which effecti…

* * *

[https://www.zfnd.org/blog/zcash-trademark-update/](https://www.zfnd.org/blog/zcash-trademark-update/)

* * *

> [@Update on trademark strategy](https://forum.zcashcommunity.com/t/update-on-trademark-strategy/34876):
>
> I apologize for the confusion and alarm this caused. There’s been some miscommunication between the foundation and us, for which I accept responsibility. We prefer decentralized management of the trademark, and that’s why we proposed the 2-of-2 multisig structure and have often spoken in support of it. The foundation recently suggested that it could use the resulting veto power to impose conditions on what decisions the community would be allowed to make. This gave me misgivings about increasi…
