Not sure if the google French-to-English translation is 100% correct, but sharing the interesting points:
The founders dissatisfied
The announcement of the creation of a new blockchain was made during the ZCon1 conference in Croatia. The main reasons are as follows, on the one hand the current blockchain does not satisfy the founders as well as the company financially supporting the project, the Electric Coin Company.
On the other hand, confidential on-line transactions represent only 2% of all transactions processed by the network . This is mainly due to the difficulty of using shielded addresses.
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To overcome these problems, Zcash will adopt a similar approach to Ethereum 2.0, with the creation of a new blockchain .
This blockchain will be developed in parallel with the current channel. At its official launch, all users of the current blockchain will have to transfer their assets to the new channel. The transition process has not yet been unveiled.
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No announcement has been made regarding the consensus mode, however we know that the Proof Of Work - currently used by Zcash - is not the most optimal model for implementing Sharding and that the Proof Of Stake is preferable.
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The bold parts of the article are from the original article, not mine!!!
i’m not sure why the crypto community thinks it’s a bad thing to pay their developers. why would you want the people that are working on the money you depend on to be stressed out about money. actually think a lot of projects understand this gives ZEC development an edge on them. ZEC devs aren’t worried about how to get paid, like their devs. i don’t even feel it’s an “ultimatum”. haven’t seen many zcash people argue against extending payments to devs. it’s just a matter of the best way to do it.
The problem is different, what they can do, what they want and can do nothing and receive money anyway, the organization should not work on which the success of the product depends on, now they have spent 3 years and what they have come to, that everything needs to be redone or you think That all products will remain compatible? From the point of view of the investor (the buyer of the coin) is a failure, because the money invested is gone (this is not a prediction but a fact at the rate of Bitcoin)
Agree with you on that @kek, if you pay peanuts, you get monkeys
But on the other hand, some coins are still around and wished that they only may had 10 % of the funds that went into Zcash. There are some calculations floating around here, and what went from the miners to the FR already was a large sum of money in my opinion. ( Yes, I know, it was diveded between parties, but even then it was still a substantial amount of money in my opinion )
That’s not the problem. I guess even the biggest idiot understands that devs/employees/engineers/staff has to be paid. Everybody thinking that someone should work for free better never tries to open his own business.
The problem for many, including me, especially with the current founders reward is it’s distribution, flawed design by default and efficiency of the product compared to the funds that the FR has and will generate until october 2020.
Just to fit up the main points and concerns so it gets clear where the problem actually is:
The founders reward generated allready an estimated $200M+, with the current exchange rate at $100 the Founders Reward will have generated far over $300M, mostly something around $350-$400M, that’s a huge amount.
On Zcon1 it’s said that 1M montly are needed for current development with the overwhelming majority used for saleries. That’s ok more or less. 4 Years x 12months x 1M = 48M for the past time period of the founders reward and for the future period. It’s all ok that everybody profits from the FR, must must it really result in such big gap?
As a sidenote: When i was 18 i made my first company with a great idea, funds, motivation but without experience, leave alone financial experience. I than back took from the turnover 60+% for myself. Needless to say i went bankrupt after a year, lol. After i learned this lesson the hardway a never ever took out more than 20% of the companies and left at least 80% for investments, reserves, etc. Never ever had financial problems again on neither company i run. Get the idea?
Next question is how much funds are needed for future beyond 2020, for which planned upgrades, innovations, features, whatever. Or the allready announced $1M monthly for saleries, are these for 10, 20, 50 or 75 employees. Are advisors still included and get a share? Are they really needed to have a contstant payment (just as an example). Or something it seems everybody is afraid so far to ask, will Zookos previous FR share of 0.9% (2033 ZEC per month) be the same, higher, lower with the new dev fee? And so on … Hence my proposal a dev fee is having the foundation as the recepient as a transparent non profit organization preferable a pure profit not-so transparent company…
Than how big should the amount really be? We see all kind of proposals from 0 to 20% dev fee.
Let’s make a short elemtary calculation:
The amount needed per month by Zook on Zcon1 is $1M per month
ECC so far until June got 2.8% of the FR, makes 6,126 ZEC per month, at the current exchange rate of 100 that's ~612,600 US per month.
If i correct, sinece June the ECC gets 8% from the Founders reward, which should be 17,501 ZEC per month or at current exchange rate of ~$100 about $1,75M per month.
Enough funds for the ECC and the Foundation even at 8% and current exchange rates. As most of you guys anyway think we reach soon $200,300,600+ nothing to worry if the dev fee is in the range of 5-10%.
Another sensible point is of course the ongoing lawsuite. While i fully understand that we want get much information about it from either side and until an outcome/court challenging we know as much as nothing. But while talking about millions it should of course play a role, even more shares of the founders reward are included in this lawsuite over $2M. My personal opinion is that using the foundation as a new dev fee recepient which is not compromised by an ongoing lawsuite (nobody knows if there won’t be others following after the June FR dilution towards ECC) is the better choice to have dev funding in a “safe harbour”.
Than maybe the biggest problem. The community is asked for proposals and dev funding choices without even having a system in place where someone can vote. The whole process should have begun with a solid, fair community wide voting design/system. Additionally time for proposals are short and get even shorter.
This of course creates some uncertainty & doubtfulnes, hence we see daily some headlines interpreting every comma and point.
That’s right, but for the current situation, where there is no development goal, you just need to get zec and convert it into dollars, no one will change anything, then they will simply say that the startup failed and after making conclusions we try again.
All official representatives only pretend to work for the good of the community, but in fact what has been done and completed 100%?
Updates pass by themselves, protected addresses 2%, laughter.
Management and structure develops but employees are judged and the community becomes smaller (how many people are actively on the forum)
The price of a coin falls like value.
and so on.
Here’s a tweet: https://twitter.com/jswihart/status/1143843474594250758
I expected this work from the company throughout the entire period of work, it’s good that after 3 years work has begun, we will look at the result.
Wilcox also revealed the current state of the ECC’s finances. He said that it has $3.35 million in the bank and is holding 29,096 ZEC ($3.2 million)
Ahh this explains why he is so happy about the coin that must not be named aka friendly fork. Hope I get to dump my friendly fork coins before he does.
Hey ECC here is an idea, as soon as the fork happens dump the free coins you just got… it should at least pay the person for the time it took to do it. Who knows maybe even enough to buy everyone a coke!
and I can’t find the article, but I just read that ECC is now getting 8% of the founders rewards instead of 4% (because some founders reallocated their funds to ECC)… So they’ve doubled their incoming capitol.
My personal opinion is that the less exchanges & trading pairs a current currency has the bigger the impact is when it gets listed on a top notch exchange.
For example:
Chain Link has about 86 trading pairs across exchanges while Zcash has allready over 230 trading pairs. Hence why the impact is way bigger than we saw it with Zcash when a new top exchange/pair gets added.
Or a even more simple theory the more exchanges/pairs a currency uses allready the more this is as well allready included in it’s own price.
Additionally the high max supply issue. I personally believe coins that have multi billion max. supply are easier for adoption due their unit’s lower price and more attractive for users. Additonally it always seems to be easier to have the price risen from 1 cent than from 100 USD.
Just my theories why the coinbase effect gave chain link such boost…
possibly! i think it might have more to do with the fact coinbase handcuffed ZEC by only listing ZEC/USDC pair for the majority of time we’ve been trading on CB. ZEC/BTC pair was only added a couple/few months ago, and we still have no ZEC/USD pair.
link got listed on coinbase and immediately received link/USD, link/BTC, link/ETH. also link was added by itself. zcash was listed when they listed a bunch of other coins.
great example is gemini listing. we immediately received ZEC/USD, ZEC/BTC, and zcash pumped +$100. we did a full retrace, but that’s mostly because bitcoin starting shitting all over itself. oddly enough, pretty sure zcash hasn’t had a single decent pump since we’ve been trading on coinbase. zcash not having any news for 10 months straight could have a hand in this equation too, tho.
this should be a selling point for people considering investing in ZEC. don’t believe it’s a normal thing for a legitimate altcoin to not have any significant news for more than a year straight.
kinda going with the “no significant news” theme …zcash has basically disappeared from mainstream financial publications. believe last mention was in april.
Just thinking about it i mainly agree with you.
Thinking further it will be interesting to see what happens IF there is no new dev fee/tax in place until the Founders Reward expires?!
Or another thought. Maybe exactly that founder reward is one of the reasons we have not many news at all. IF everybody gets his piece of the pie with/without doing much there could be less incentive to give news whatever attention?!
And the last thought. I didn’t check yet against any other currencies that had premine, ICO, dev fees, funding rewards or whatever kind of funding, but i could bet that Zcash is in the Top 5 if not Top 3 from the amount the founders reward has and will generate until it expires compared to the amount of funds other projects have been able to raise/generate/get/got … A new dev fee should even boost it into #1, at least i’am not aware of another project that has/had such a generous funding available…
