Is the Zcash Foundation fully committed to Zcash? Why are they retaining $2,000,000 of altcoins?

General
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(nobody needs to read this, I’ve been sharing the same opinion for years)

This is the ~35 million dollar question (35 million is the approximate altcoin holdings within the ZF and ECC/ their BTC, ETH, BLD, STRK, BOLT investments)

Was there consent back in 2019-2020 when creating ZEC block subsidies, to let these ecosystem subsidized orgs turn around and run crypto altcoin hedge funds, while indiscriminately dumping ZEC to cover operating/ administrative costs?

Read ZIP-1014 for yourself!

I think that when we look at the ZF and ECC balance sheets today, it isn’t unreasonable to conclude that they’ve broken the trust of the ecosystem by leveraging so far outside of Zcash/ ZEC.

This is why I’ve added the gentleman’s agreement to my Block Subsidy proposal. We need organizations that are all-in on Zcash. Otherwise, I don’t believe that they deserve ecosystem subsidies.

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what would happen if someone is reporting them to the SEC?
https://www.sec.gov/tcr

if you combine their investing/trading with some of the given grants to friends and family it doesn’t look good… WE NEED CHANGE, NOW!

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It’s Happening!

cute-baby-cheering-enkl65ixwvswlna1

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This is a serious and ugly allegation. It seems to me that you either did not fact-check or this is disingenuous. It’s quite disappointing and seems to be a pattern.

All investments that ECC holds were made before ZIP 1014 and the creation of the development fund. They were made as part of the funding that ECC received as part of the founder’s reward. It was at this period that we also incurred our debt obligation to LAE. Until recently, these assets had no liquidity or secondary market interest. Secondary market sales were explored, which has been stated previously. As I’ve repeatedly stated, ECC is committed to good treasury management. To be abundantly clear, NO ZIP 1014 funds have been used on alternative investments.

I will also note that I prefer we significantly change the development fund structure, as I have proposed in this forum.

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I didn’t fact check this part, I’m not sure how I could have.

Thanks for making this perfectly clear. It is a game changer.
All of the alt-project holdings were created pre ZIP-1014.

That moots most of my ramblings about running the ECC running a crypto hedge fund under ZIP-1014.

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thanks for letting us know @joshs
this was struggling me for some time now.

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how is the situation with the foundation?

are they legally allowed to trade cryptocurrency with the funds that they get from the dev fund?
i mean it’s not USD, it’s investing it into other coins to gain more money.

i think everyone besides the people that get paid by the foundation, we can all agree that it is nothing more than a punch in the face for ZEC holders and investors, but i would like to know if it is legal?

thanks to anyone that can share an insight here.

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Well, I now have to eat crow immediately. Ugh.

I went to double-check the date on a $25k seed stage investment made by Bootstrap (ECC’s owner and recipient of the dev fund) for shares in Ingonyama and found it was made in 2022. I apologize for responding too quickly with this miss. To my knowledge, this investment has no tokens or secondary market interest.

However, the Agoric, Starkware, and Bolt Labs investments were made prior to 1014. There are no other alternative investments.

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Jack has already answered this plenty of times.

To try my best to summarize

  1. the ZF wants crypto market upside exposure, excluded from Zcash, because they assert that there is single-point-of-failure risk to being all-in ZEC
  2. that strategy involves balancing a ZEC vs BTC allocation (I believe the odd 12 ETH were donations, and aren’t traded with)
  3. they have no plans to change any of the above strategy
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thanks, i have read all of that before and know that Jack won’t come back to just repeat himself.

my main point is, is it legal what they do? investing money that they get from the protocol, that is paid by investors and holders, that are constantly loosing money compared to all the assets that they are selling their ZEC for.

i do not believe that this is exactly how a 501(c)(3) should be operating.
@Dodger could you please elaborate on how all of that is legally fine?