Shielded Labs’ primary focus is supporting the development of the Zcash Sustainability Fund (ZSF). So far, we’ve completed the three ZIP specifications in Milestone #1 and are about halfway through the development work for implementation into Zebra. Market conditions have slowed down development, but I think we’re making decent progress.
In addition to the ZSF, Shielded Labs is also working on other, smaller projects related to user adoption, such as collaborating with ZecHub on a video explainer about Zcash Shielded Assets (ZSA), which is anticipated to be released within the next couple of months.
Shielded Labs currently holds the vast majority of its treasury in ZEC, with a modest exception of approximately $1,500 in ETH received as donations. I’m bullish on Zcash over the long-term, so I’d like the organization to maintain significant exposure to ZEC. Since the cryptocurrency market tends to move in volatile boom and bust cycles, I think it would be prudent to diversify a portion of our ZEC holdings into fiat during more bullish periods. Shielded Labs will not engage in “speculation” on altcoins; however, it may acquire such assets through donations.
My original intention was for Shielded Labs to become a recipient of the Development Fund after the next halving. However, I’m now undecided about proposing this. The ecosystem has changed significantly since Shielded Labs was first announced. Given that Zcash is currently in survival mode, I believe funding should prioritize collaborative efforts among established entities rather than supporting a new and unproven organization.
Market conditions have slowed Shielded Labs’ progress, both in terms of our activities and organizational development. For instance, I’ve struggled to find additional non-US individuals to join our board and contribute to our strategy. Currently, the board consists of two unpaid directors: myself, based in the US, and one other member in Sweden. Overall, I don’t think Shielded Labs has yet proven itself deserving of the Dev Fund. Other established organizations, such as QEDIT, are much more qualified for support.
Having said that, if there was enough community support for a non-US Zcash entity to protect the ecosystem against US regulatory pressure, I might reconsider Shielded Labs becoming a Dev Fund recipient. However, it doesn’t feel like that’s where the community’s interests are right now.
Lastly, I take pride in the fact that Shielded Labs is the only independently funded Zcash entity, with our entire treasury coming from donations. The idea of continuing as a donation-based organization is somewhat appealing; it could serve as a unique example for the ecosystem. However, the viability of this model heavily depends on the willingness of people to donate and, ultimately, a consistent long-term increase in the price of Zcash.
No, I do not believe that Shielded Labs’ non-profit status in Switzerland will hamper its ability to strategize about the value of ZEC. In fact, I think that both the ECC and ZF have historically been too conservative when discussing ZEC as an asset. There’s a fine line between overtly promoting ZEC and educating the public about Zcash’s value proposition.
For instance, I believe Shielded Labs could initiate an educational campaign that, in part, focuses on how Zcash, as an innovative financial technology, possesses store of value properties similar to Bitcoin. This would be a factual, educational approach rather than promotional. Our objective would be to inform and educate rather than to influence market behavior. Although we cannot (and would not) engage in “shilling” ZEC, I believe we are well within our right to educate people on why Zcash is a valuable technology.
The core initiatives of Shielded Labs have not changed; however, as noted above, the pace of our progress has been impacted by market conditions and funding constraints. I recognized from the beginning that building Shielded Labs into an established entity would not be an easy task, but I’m committed to continuing our efforts to support Zcash. This process will inevitably take time, and I appreciate the community’s patience, understanding, and support.
Thanks!