I write this without having discussed with anyone working at ECC, ZF, or ZCG. I would have gotten more relevant data points if I had (and perhaps I risk coming across like a nutcase because of a lack of context), but in this case I am prioritizing the ability to say that this has been written solely by me, without the influence of anyone at ECC/ZF/ZCG.
Since leaving the ZOMG/ZCG in January 2022, I’ve stayed marginally involved in Zcash. In my opinion the ZCG has done a great job leveling up in terms of scope and community engagement (RFPs).
The dire wallet situation brought my attention back to the challenges facing Zcash.
I don’t want to make a long post, so i’ll dive right into it without more preamble.
I would like to propose that ZCG allocate 50-75% of its block rewards for the next 6 months, and/or some % of its outstanding discretionary funds, towards ECC and/or ZF. These % numbers are arbitrary, I put them here as a starting point.
1) Because ECC/ZF really need it.
Thanks to the spam transactions we are in crisis mode.
Thanks to our dismal token performance we are struggling to throw resources at the problem (without unbelievable opportunity cost in terms of other protocol priorities).
If I “gave up” on using ZEC because my wallets (plural) couldn’t sync in a year, I can only imagine how many other gave up on ZEC entirely, and how many were prevented from onboarding ZEC during the privacy resurgence that has emerged since late last year.
2) Because this is the best use of funds.
ZCG is doing a good job but investable, high-value projects remain scarce. According to the Q4 2022 transparency report by ZF, only 9% of ZCG’s discretionary budget was utilized at that time (page 19). It’s not because they are reluctant to allocate; rather, they are exercising discipline in quality control. This was a problem when I was on the ZCG, and it remains a problem now (a smaller problem, thanks to the efforts of the ZCG!).
Critically, ZCG funds builders and creators that support “the public good of the Zcash ecosystem” (ZCG website). But if Zcash itself is floudering, then the “ecosystem” ceases to matter.
If the soil is infertile, it does not make sense to keep planting seeds. We need to apply fertilizer first, to turn our resources back into the earth.
3) Because this is good for everyone who cares about Zcash.
And, there is no point for ZCG to hoard ZEC if this means that ZEC is worth 50-80% less next year.
Now, before anyone yells at me, I understand there will be challenges. Operational challenges! Legal challenges! How can a nonprofit allocate to another nonprofit? What precedent will this set? How can we decide what % is fair? How do we get all of these sorted in time, before it’s too late to matter?
I am not sure. What can of worms this opens, what jeopardy we put ourselves in, and what the directors of the related entities risk, I will leave it to people more involved than me to debate. (Hopefully we wil see more solutions than problems.) I merely want to throw this out for discussion, as someone who cares about Zcash, ZEC, and privacy but who is not formally tethered to any of the 3 organizations.
It’s time to choose our poison.
Perhaps this change is better implemented at the protocol level (i.e. the block rewards skip ZCG wallet), after a decentralized ZCAP vote? I don’t know, just spitballing. ↩︎