Thank you @ericmeltzer for publishing this proposal and asking for feedback. I very much disagree with the proposal, for the following reasons:
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We need the employees of the Zcash Company fully incentivized to work as hard as they can towards Zcash realizing its full potential. Their full share of the Founders Reward helps provide that incentive for at least the next 2.3 years (and hopefully beyond that, assuming that many of them will continue to hold ZEC well into the future and thus will have a financial interest in the price of ZEC appreciating).
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Your partner at INBlockchain, Xiaolai Li, was an early investor in the Zcash Company, has an ownership interest in the Company, and is a recipient of the Founders Reward. Li already received his complete share of the Founders Reward because the investors were paid out in full during the first year. In contrast, the non-investor recipients are still be paid out. It seems unfair that, after Li has been paid out in full, Li’s Company would put forth a proposal that dilutes the Founders Reward shares of all the non-investor recipients that are still in the process of being paid out. Even worse, the proposed dilution directly favors Li (via management fees and possibly the ability to invest in companies that INBlockchain has existing ownership interests in).
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The Zcash Company owes a fiduciary duty to all of its owners. The proposal arguably calls for a violation of that fiduciary duty, by conferring a benefit to one owner, Xiaolai Li, at the direct expense of the non-investor owners.
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As @daira has argued, the proposal arguably calls for the Zcash Company to breach its contractual agreements with its employees, by diluting the Founders Reward shares owed to the employees.
(As an aside, I applaud the unlocking of this thread. Let’s say that I signed a contract with the Zcash Company in which the Zcash Company agreed to never change the mining algorithm. Would forum discussions advocating that the Zcash Company change the mining algorithm be inappropriate because I have a contract with the Zcash Company and I do not consent to the Company breaching the contract? Of course not.)