Controversy Over Zcash's $124 Million Subsidy Reform Plan

The conflict over the subsidy management within the Zcash ecosystem is intensifying. The Zcash Community Grants (ZCG) has proposed a reform plan to convert $124 million in funds into future mining rewards, but key figures have criticized that issues regarding the accountability of fund management and decision-making structure remain unresolved. ZCG plans to transfer 98,000 ZEC from its held funds and future allocated subsidies to the Network Sustainability Mechanism (NSM). Currently, ZCG holds approximately 91,500 ZEC, of which 36,200 ZEC (about $46 million) will be transferred to the NSM, while 55,200 ZEC (about $70 million) will be retained. Additionally, ZCG will forgo 62,000 ZEC (approximately $78.5 million) that will be allocated in the future, and plans to gradually reduce the remaining subsidy payments until the halving in 2032. Under the current system, ZCG's automatic subsidy allocation will end in 2028, and the reform plan aims to extend the payment period by four years while reducing the support scale. However, CEO Murt Muntaz criticized the existing fund size as excessively large, stating that the reform plan is insufficient. Tyler Winklevoss raised concerns about the accountability of ZCG members, questioning their qualifications to oversee the funds.

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