Today the value of holding ZEC derives from the below. I am sure that I am missing many points, but these first come to mind.
- Size of privacy set
- Zcash dev fund
- Not having Trusted Setup
- Long Term holding ZEC in a shielded pool
Today, UX for ZEC is mostly dictated by Coinbase. Today, coinbase is the most essential onboarding ramp for ZEC. But, this will not be the case for the future set of defi users.
What does better UX mean for ZEC in 2? 5 years? 10 years?
The US dollar benefits from being a global reserve currency for trading - it benefits greatly from the high amounts of liquidity in the market. Liquidity will become the onramp for the future within defi / decentralized exchanges (Orca, Osmosis, Uniswap). Building these outlets is essential.
Proof of stake also definitely adds to that value piece.
Interesting Notes on Why Proof Of Stake from podcast with Sunny Aggarwal
- “why he thinks that having more than one Proof of Work chain is fundamentally insecure”
Though, there is definitely accrued value from holding ZEC stationary in a shielded wallet. Will this be enough for ZEC adoption / economics.
Also, I am still trying to understand this problem space further, please share any resources that might be helpful.
The community (and the Electric Coin Company) are in the early stages of considering a protocol layer reconfiguration to the supply emission solution (originally a copy, paste of what Bitcoin used back in 2009)
In the context of a shift to Proof of Stake, there is debate around how to better distribute the long term capped supply of ZEC. At the current pace more than 90% of all coins will be arbitrarily distributed through Proof of Work miners and via the 3 primary ecosystem orgs (and debatably some coins may still be getting distributed out of the now discontinued Founder’s Rewards).
A move to Proof of Stake in the future intends to better align the protocol intrinsic incentive to assure robust and reliable security by rewarding ZEC validator-stakers, but how is that sustainable in the long term if so few ZEC are available to be distributed as rewards?
I assert that too many coins are being rapidly distributed too early in this project’s lifecycle and under an incentive structure that will be obsolete in the future. To save Zcash from consuming itself and plundering best odds at success, the ecosystem is on the brink of having a hard and serious debate about making the supply emission update
ZIP - Changing Zcash supply curve to 3% yearly after 2020 halving - Community Collaborations / protocol - Zcash Community Forum
Some great info in this video