This is why Zcash matters

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Yes ZCash matters! I agree totally, that’s why we should right from the start do it correct! Kick out the investors and stop financing the 1%! #MakeZCashGreatAgain

‘We’ should do better if ‘we’ don’t like what’s on offer.

Monero is 100% anonymous and it is more CPU friendly than the zcash algo. It was also not premined and no parts of the block reward go to the devs.

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What algorithm are you referring to and how are you defining ‘premine’?

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@Voluntary @Miki it doesn’t matter if we call it premined or whatever. Let’s not waste time and stop to argue on how to call it. The only thing that matters is that the investors will have 10% of all the coins!
Semantics > Syntax

It’s not a premine. “Premine” refers to part of the monetary supply being available before mining is practically available to the general public, and spendable from that point. That’s what the “pre-” means, and this has been the consistent meaning in discussions of other coins. The choice of terminology does matter if we want to be able to understand each other, and using “premine” to describe Zcash’s currency distribution is actively misleading. When the Founders’ Rewards are spendable matters a great deal to the Founders’ incentives (and to the likely effects on fiat exchange rate and confidence). The rules of this forum allow to criticise that distribution, but please do so in accurate terms.

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Founders’ Rewards is the correct terminology I agree.

Is there even a slightest chance with all the criticism the project received that the founders reward is subject to change if the community continues to protest heavily on that matter or is the founders reward set in stone and the community is not considered at all?

I’m not protesting - aren’t I also part of ‘the community’?

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Considering that a portion of the Founders Reward is included in ZECC’s contractual obligations to investors (obviously, since they’re not giving us free money), no, that will not change at this point. Also, I think you’re misrepresenting the distribution of views in the Zcash community, @TrashMan.

Good point! Let’s find out what the community thinks. I just created a poll for that.

“Mining tax” is also accurate IMHO. The Founder’s Reward is just part of the block reward that’s being diverted away from the miners – so it’s really the miners (not the general users) that bear the weight of the Founder’s Reward.

Alternatively, one could accurately describe it as a long series of tiny ‘instamines’, where new currency is created each block and given to someone other than the miner that solved the block.

Anyway, It doesn’t matter. @TrashMan, that decision really has been made and cannot be undone now. It’s not a project-killer. And a fork, at this point, has very little chance of being as successful as Zcash proper. A cryptocurrency is much more than code, and much more than a network of computers. It’s also a network of people. And you need a lot of them. Zcash has a lot of them because the team is epic.

The Founder’s Reward doesn’t impact the anonymity of users. It only has a negative impact on miners that mine during the first four years. It might suppress the value of ZEC, because founders will always be able to sell their Founder’s Reward coins for less than the cost it takes miners to mine their coins. That could have a negative effect on early (post-launch) investors in ZEC. It would also (over the short term) act a disincentive for people to mine – which is why I think they won’t do that.

TL;DR: The Founder’s reward only has a negative effect on miners and early (post-launch) investors in ZEC. That’s a small subset of the overall user base. The rest of the user base doesn’t care, unless it’s on purely moral/ethical/principled grounds (like myself). I really think a fork at this point would be a complete waste of time.

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A proportionate amount of work is being done to produce each block so there is no instamine. Also, knowing there will be a division of the reward from the get-go, miners will still freely choose to be involved so it is hardly a tax - where you pay or you get put in a cage.

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Sales Tax: You freely choose whether or not to be involved in a purchase.

Property Tax: You freely choose whether or not to own property.

Income Tax: You freely choose whether or not to generate income.

Free choice and taxes aren’t mutually exclusive.

As a thought experiment: would you have a different opinion if the Founder’s Reward were 99.999% of the block reward for the first four years?

Regardless of the founder’s reward percentage, miners have to make their own decision to get involved.

btw Property tax is a particularly bad example of a free choice as the alternative to owning property is typically much worse, resulting in a much greater expense. Same with the consequences for not generating what is often referred to as ‘income’. Thankfully, ways of getting around sales tax are more readily available - and it’s that availability of alternatives that makes the Zcash founder’s reward less of an issue. If someone objects to Zcash they have many alternatives.

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