Zcash Dev Fund


With an industry that’s value is based entirely on Network Effects, token price signals the health of a project.

Bitcoin grew because price bubbles attracted speculators and opportunists. Having bleeding edge/novel tech gives the sufficient foundation for a company to last, BUT price movement creates the necessary Network Effect for the project to blossom in the first place. I like that the team is focused on development but to say price doesn’t matter is nonsense.

In this proposal. I suggest that the team give a reasonable number that need to continue operations. (Zooko has already responded with $1.1m per month, which I think is fair). HOWEVER, that number is derived on a price of $50 Zcash. This is why we are seeing support at the $50 level because the foundation is estimating all future budgets at this price, which creates a quasi price floor/support.

I suggest that the foundation force to budget at increasingly higher Zcash Price each year (e.g. the $1.1m per month will be paid at $100 in 2020… $200 Zcash in 2021… and $250 Zcash in 2022). With a company that has no revenues, the price is the ONLY barometer of the health of the project. If the price is higher then the Zcash can continue to expand as they please. If its not met, then supporters shouldn’t be left holding the bag.

Im on twitter and telegram @cloudedlogic if you have any questions.

-AP

1 Like

I very disagree with this. This, in my opinion, would hold true, IF the whole monetary base was released allready which isn’t the case. Or in a real life example. If all shares have been sold, than we could use the price as a barometer.

This is not the case as only 1/3 of all ZEC have been minted/mined so far. In your calculation you forget the inflation factor which is huge right now and will be a big one the next years.
Inflation is continously influencing price for the next years, unfortunatly. We another such big influencer (inflation) it’s not possible to take only the Zcash health of the project as a price barometer, actually it’s absolutly impossible.

The only theoretical scenario your assumption would hold true if you daily build exactly that more amount of demand as new ZEC get into circulation (supply) and i doubt that can/would happen.