Which hazard?
The hazard that we can see all around us today, 6+ years of freely spending ZEC that were free via block rewards. And we haven’t got intuitive, simple, working wallets, we’ve only got 150 full nodes running globally, the coin value is a disaster, governance remains centralized under the ZF and ECC/ Bootstrap, We’ve even got the ZF Executive Director violating Zcash Community Rules on stage at Zcon4 without being levied any repercussion. (these are the productive hazards). The moral hazard is that the block reward ZEC predominantly go to affluent Americans, despite there being hundreds of members of the Zcash community in day-to-day material stress. Removing free ZEC block rewards, removes the moral dilemma of giving free ZEC to affluent researchers, policy lobbyists, managers, and engineers
How?
Everyone in the Zcash ecosystem shares the same skin in the game. Salaries are no longer indiscriminately paid vis-a-vis ZEC holder devaluation-dilution, et al. Alignment of all material interests behind the value of ZEC is critical in fostering an egalitarian, decentralized ecosystem. Until then we remain trapped in an Us vs Them dilemma
(block rewardees/ insiders wanting to keep their power and free spigot of ZEC flowing vs non-block rewardee community, ZEC holders, ZEC users)
How?
Here
How does a fee market solves the problem the dev fund is designed to solve?
This has been described at length by @Jgx7 in other recent threads.
ELi5 - a fee market is necessary in combination with the Sustainibility Fund, such that transactors or builders are empowered to automate (or at discretion) new treasury funding. Secondly fees are perpetually generated, which mitigates against funding risks around a hard capped coin supply.
From where would they get funds?
They already have a ton of ZEC and cash, and theyll be receiving more free ZEC all the way up to the November 2024 halving. After that point, presume ZEC has accrued value above $100 and their ZEC can be used to create new routine yield via PoS staking. These organizations if endeared by the Zcash ecosystem, will also be receiving opt-in direct donations and funding from community members.
Why? It’s very likely that miners sell all the ZEC they mine. How would that change?
Giving miners today, or stakers of the future, an additional 20% yield increases their ROI, which increases their odds of retaining ZEC in their portfolio rather than instantly liquidating into cash or BTC. Retaining ZEC is a win-win-win, but as the current model takes 20% from miner yield - they are perpetually kept in distress.
PoS is a super complex thing to implement. Who is going to do that without the dev fund?
ECC is and will continue to do this, even at depressed ZEC values the ECC has ~2 years worth of funding to invest in their PoS work. Again to the above point, factor in an increase of ZEC value with an increase of opt-in community member donations, and they’ll have more than a long enough runway to complete the PoS upgrade. If times become critically stressed, extra-ECC individuals may support PoS efforts via ZCG minor or major grants proposals/ funding.