Restructure the treasury: convert crypto assets (like BTC) back to ZEC

For years, Zcash has been sending a bad signal by dumping ZEC treasury for cash, while also converting some of it to BTC or other assets.

That’s kind of the worst signal people can get from the project.

ZEC should be the very last asset that gets liquidated to run the ECC, ZF, ZCG, etc.

We should all be aligned to increase the value of ZEC and never consider ZEC as a form of coin used only for funding the formal structures and developers.

I propose restructuring the treasury to liquidate all unlocked and non-ZEC crypto assets (mostly BTC) and convert them to ZEC.

Let’s send a strong signal to the market and let everyone understand that ZEC is not some of a inflating coin funding devs’ lives and that we all believe in its value as a private SoV and that we’re aligned with the coin value itself.

If ZEC is valueless, devs shouldn’t be funded anymore, that’s how it should be.

I believe in ZEC value, but can’t stand seeing those who should be the most interested in its value, acting against as we could see in the past.

This is not a game, ZEC should be treated as the whole project with maximum priority. The future of our society deserves this. Let’s realign the incentives for the future of decentralized and private SoV (and MoE) or we risk losing it all.

People must see ZEC as a private SoV and that we’re all in the game.

If ZEC goes down, we all go down. Skin in the game is a must, there’s no plan B, C, or D, only plan A.

9 Likes

It would be legally sketchy to try to “send a signal” to the market, if I understand correctly.

No, it’s not. You just realign, you won’t be making blog posts about it with sketchy wording.

I’m just proposing something that shouldn’t have needed to be proposed in the first place, if the incentives were aligned since the beginning.

What actually was really sketchy was selling ZEC for BTC, resulting possibly in people not caring about ZEC as a SoV. When even ECC/ZF didn’t think it was a good SoV, why would anyone be interested to hold it (as a SoV)?

The market is people, those who use ZEC as a store of value or those who need to transact freely.

2 Likes

(Not speaking on behalf of ZF)

I don’t understand this obsession. Most users have no idea and don’t care about the how treasuries are structured. If this is done it won’t make the number magically go up.

2 Likes

The market is psychology. A fundamental change in posture and outlook can indeed increase the value of ZEC.

This question stands unanswered: if ZF prefers to use USD and hold BTC, why would any market participant exchange these assets for ZEC?

Or, if ZF prefers 0.0004 BTC to 1.0 ZEC, why wouldn’t I?

Or, if ZF believes that BTC is a better store of value than ZEC, shouldn’t everyone?

Selling ZEC for USD and BTC makes the project smell like an old ICO scam where the founders are looking for ways to increase their BTC or USD holdings and don’t really have conviction for the token they put out in the market. I’m not accusing ZF or ECC of “scamming,” but the preference for BTC and USD has this sort of smell and that’s why people are obsessed with the topic.

People want leadership who have confidence in the future of the ZEC token and enough conviction to set a floor price in BTC under which the ZF will absolutely prefer ZEC to BTC. Is there no such price?

5 Likes

ZEC earned must not be sold, unless there’s no other way to continue running the ops, it’s the last resort to sell ZEC. What’s even worse is selling it for other crypto asset like BTC.

@skyl excellent explanation for those who still don’t get it and why the previous behaviour was strictly irrational for the project.

@joshs

2 Likes

I agree that hedging into fiat when the price of ZEC is increasing is prudent to diminish volatility. But, if ZF would be a ZEC seller at a new all-time low of say 0.0003 BTC/ZEC, shouldn’t I go ahead and be a seller at 0.0004 BTC/ZEC? If there is no price at which ZF would prefer ZEC to BTC, then it seems final that BTC is a superior SoV. Therefore, there is no reason to buy ZEC.

Question stands: “Why would anyone buy a ZEC for 0.000388 BTC when we know that the ZF will sell for less?”

10 Likes

So true… this is one from the main conclusions new investor have to see… I will not ask questions or make argumenst because members here can in constructive way tell you the other site and you will have no word at the and…

The main problem for example if Privacy get total colaps and all Privacy coins go to zero and they have BTC so is not big deal gor them , they have incurance, I think this risk is hidden here, because nobody knows tomorrow that will happen…btc is like gold… no problem in big economic or crypto colaps…

I dont know they sold on that low price, if is that true that is not good… better can place buy orders on 20 or 0.00003 and Zec will not go down any more…that is good for them also, when is not insider trading…

But selling Zec for Btc for new people didn’t sound gut… there is people that read the forum, but not login… and this is the biggest question and discusson people want to know why is this happening…I understand ECC and ZF from economic point of view but most said bad about that…

without going into further detail, it’s mainly the members that are working for the Zcash Foundation.

ECC is not going to invest ZEC into other assets anymore, but the foundation @Dodger said that they will not just continue to swap ZEC for BTC, but they will also look to buy ETH with ZEC in the future!

to me this is madness, and we all should keep that in mind when we vote on how funds are distributed in the future. if we end up with a donation based funding model, i wouldn’t send a single dollar to the foundation until this stops.

it’s a punch in the face to everyone that is buying ZEC with their hard earned money.

i think we all agree here, but it won’t change anything. they will continue selling their ZEC for BTC and ETH. all we can do is not giving them more ZEC in the future to continue.

2 Likes

What? is that true @Dodger @joshs? That’s unacceptable. But might be just FUD.

You are good man here I trust you… when that is case better we sell now on 27-35 because when come zec 35 only changes the price to go above are becoming smaller with this info… especially for me…
I Love zcash because is only crypto gave me extra profit, it looks i’m rare case this year :grinning:.

The problem is I have a bunch of friends that follow here who has invested and this info is not good for all of us… how will brake 35 with this kind of info, shorting is waiting on 35 I guess…
Thanks for good answer…

?? Where was this said?

Let alone become a merchant who accepts ZEC as payment for goods or services.

I’ve spent too much time already in this forum, making the case for ZEC… glad to see some new voices also sharing my concerns.

The market is a print-out of the behavior of people! The big picture of ZEC-USD shows us all the story clear as day - people can’t believe in it for SoV, and merchants would be fools to do anything but sell ZEC into Fiat after payment.

We’ll never have a virtuous growth cycle in this ecosystem until ZEC begins to store/ grow wealth (at the minimum pace with BTC, ETH, LTC, or any other ~mainstream crypto assets). Case Closed!

8 Likes

this is currently the only quote that i was able to find, but i think the words that have been used here reflect the concerns of a lot of community members @conradoplg @ywalletfan @Jovan

THIS IS NOT ACCEPTABLE

3 Likes

It might feel this way, for a long time - I too felt like change was needed, but the reality of the Zcash ecosystem is that the organizations all are trusted with a degree of faith about how they manage resources. The ZF has a well-thought approach (and note that it has proven successful in certain respects) to managing risk on the balance sheet, while maintaining a core crypto-long exposure (BTC) that isn’t solely ZEC. I don’t think we need to be fighting a battle that doesn’t exist from the ZF perspective.

1 Like

i might be wrong here, but to me it looks like all they are hedging against is that they get their paycheck at the end of the month, while not taking care of the average ZEC investor and the sentiment around ZEC.
most if not all ZEC buyers are down a lot compared to the foundation, we are actually the ones that made it able for them to get USD and all of that BTC.

if they continue doing so, they should pin it on top of the website and all of their socials, because this is something that everyone needs to think about before investing into this.

@conradoplg for example did not even know that the foundation is looking to change ZEC for ETH… and he is working there.

4 Likes

The strategy has even been self-fulfilling to some extent. If someone doesnt believe in ZEC as a SoV then nobody does.

When I received Dev Fund ZEC, I believed that it would be extremely bad form to unload that position in favor of BTC and USD. In hindsight I guess I was naive.

I still believe that Dev Fund recipients should be judged on what they are going to do with the ZEC. If a recipient has a plan to hold the ZEC, use the ZEC in the shielded pool to build adoption, pay in ZEC, they should be favored over a recipient with a plan to liquidate the ZEC to spend dollars, or worse, hedge into a competing crypto as a store of value.

A grant that creates no selling pressure is better for the ecosystem than one that gets liquidated.

6 Likes