Transitioning to a Grants-Based Funding Model

[GGuy]

Proposal to Transition the Zcash Dev Fund to a Grants-Based Model

As we approach the end of the current Zcash Dev Fund allocation, it’s clear that the Zcash ecosystem is evolving. There’s growing support for transitioning the 20% Zcash Dev Fund to a grants-based model, focusing on grants and bounties that can drive innovation and community development. A straightforward way to achieve this transition by November is to specify that the Zcash Dev Fund can only be used for grant programs like ZCG and ZecHub. Additionally, this approach allows for future grant models like the Zcash Funding Bloc and Zcash Coin Weighted Voting to be funded by the Zcash Dev Fund as they develop over the next year.

Current Context

• Zcash Community Grants (ZCG) and ZecHub are currently best positioned to manage grant and bounty programs effectively.
• The Zcash Funding Bloc is an emerging concept that needs more time (up to a year) to be fully defined, implemented, and validated.

Proposal

1. Rename the Zcash Dev Fund to the Zcash Grants Fund starting in November.
2. Specify that these funds can only be used for grant programs like Zcash Community Grants (ZCG) and ZecHub.
3. Allow the community time to implement and refine other strategies like the Zcash Funding Bloc and new programs utilizing Zcash Coin Weighted Voting.

Rationale

• Zcash Community Grants (ZCG) has a track record of effectively managing and distributing funds for impactful projects.
• ZecHub has demonstrated strong community engagement and the ability to run successful bounty programs.
• The transition period will give the wider community an opportunity to explore and establish other potential models for fund allocation.

Poll

1. Should we transition the Zcash Dev Fund to a grants-based model like the Zcash Grants Fund in November?

• Yes
• No

2. Should Zcash Community Grants (ZCG) become independent?

• Yes
• No

Next Steps

• Engage in the discussion below to share your thoughts and suggestions.
• Vote in the poll to help shape the future of Zcash funding.
• Let’s work together to ensure the Zcash Grants Fund is utilized effectively to foster innovation and growth within our community.

[ywalletfan]

Zcash Funding Bloc has already been proposed by Josh (no corporate address in the protocol, “DAO-like”).

People have already expressed they don’t want a corporate-owned address in the protocol (that also has bad regulatory implications).

Imo if we can’t strongly agree on anything, then we should just let the dev fund die (it dies automatically anyway in November) and stop creating intermediate temporary solutions like this before Zcash Funding Bloc, etc.

[skyl]

We should start hashing out the rules of the decentralized funding block mechanism. It seems clear to me that the community does not want funding to go to hard-coded corporate addresses after the November halving. But, I think it is also clear that a majority of the community would like an efficient, fair way to get developers paid rather than 100% of the block reward going to miners.

So, instead of 100% going to miners, some percentage goes into a ~trust ahead of the implementation of the decentralized disbursement mechanism.

1. can the community agree on that?
2. then what?

I like the idea. I’m hoping we can start into step 2 sooner than later.

[GiantZEC]

Many in the community want to end the development fund.

[GGuy]

Important: Deadline for ZIPs (likely Dev Fund related) that want to be activated next halvening

I have submitted two versions of the Zcash Grants Fund. The intent is to transition to a grants-based funding model starting in November rather than extend the current dev fund for another year or 2. In November this would utilise Zcash Community Grants and optionally ZecHub to allocate grants based funding. The intent is continuing to innovating this model in the future by allocating funds to other grants-based funding mechanisms such as the Zcash Funding Bloc and/or Coin Weighted Voted.

Zcash Grants Fund - ZCG & Zechub (Main)

Zcash Grants Fund - ZCG (Branch)

[zerodartz]

it seems like these 2 zips are identical? or im missing something?

[GGuy]

Some of the intent behind this proposal was to allow for ZCG to fund ZF and ECC by allocating a larger % of the slice to ZCG until other complementary mechanisms for funding can be established. The Hybrid Deferred Dev Fund funds ZCG is a similar vein but locks up the additional funds with the intent of freeing them up through some future grants-based funding mechanism to be distributed to ECC, ZF, and other parties. I believe this mechanism can work to incentivise the community to continue to evolve the state of funding and issuance within Zcash so support this mechanism. While I have concerns regarding ZCG’s ability to meaningfully fund any ECC and ZF preproposals under the Hybrid Deferred Dev Fund I believe these can be managed in a case-by-case basis where ZCG members can consider ZCG’s ability to fund these organisations with tight budget constraints. My expectation is, at least on a personal level, that it would be unlikely for ZCG to have the ability to fund ECC or ZF proposals with only 40% of the fund, with an expectation that the lockbox funding can be resolved in a manor that provides necessary funds to ECC and ZF. I therefore support the Hybrid Deferred Dev Fund with the ECC and ZF restrictions being removed. I will shortly withdraw my proposal.