diff --git a/README.rst b/README.rst index de41d74..2f04c30 100644 --- a/README.rst +++ b/README.rst @@ -57,19 +57,19 @@ Index of ZIPs 243 Transaction Signature Verification for Sapling Final 308 Sprout to Sapling Migration Final 401 Addressing mempool denial-of-service Final - 1001 Keep the Block Distribution as Initially Defined — 90% to Miners Draft - 1002 Opt-in Donation Feature Draft - 1003 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate Draft - 1004 Miner-Directed Dev Fund Draft - 1005 Zcash Community Funding System Draft - 1006 Development Fund of 10% to a 2-of-3 Multisig with Community-Involved Third Entity Draft - 1007 Enforce Development Fund Commitments with a Legal Charter Draft - 1008 Fund ECC for Two More Years Draft - 1009 Five-Entity Strategic Council Draft - 1010 Compromise Dev Fund Proposal With Diverse Funding Streams Draft - 1011 Decentralize the Dev Fee Draft - 1012 Dev Fund to ECC + ZF + Major Grants Draft - 1013 Keep It Simple, Zcashers: 10% to ECC, 10% to ZF Draft - 1014 Dev Fund to ECC + ZF + Major Grants Draft + 1001 Keep the Block Distribution as Initially Defined — 90% to Miners Obsolete + 1002 Opt-in Donation Feature Obsolete + 1003 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate Obsolete + 1004 Miner-Directed Dev Fund Obsolete + 1005 Zcash Community Funding System Obsolete + 1006 Development Fund of 10% to a 2-of-3 Multisig with Community-Involved Third Entity Obsolete + 1007 Enforce Development Fund Commitments with a Legal Charter Obsolete + 1008 Fund ECC for Two More Years Obsolete + 1009 Five-Entity Strategic Council Obsolete + 1010 Compromise Dev Fund Proposal With Diverse Funding Streams Obsolete + 1011 Decentralize the Dev Fee Obsolete + 1012 Dev Fund to ECC + ZF + Major Grants Obsolete + 1013 Keep It Simple, Zcashers: 10% to ECC, 10% to ZF Obsolete + 1014 Establishing a Dev Fund for ECC, ZF, and Major Grants Proposed guide {Something Short and To the Point} Draft diff --git a/index.html b/index.html index 9f7e832..c09052d 100644 --- a/index.html +++ b/index.html @@ -41,20 +41,20 @@ 243 Transaction Signature Verification for Sapling Final 308 Sprout to Sapling Migration Final 401 Addressing mempool denial-of-service Final - 1001 Keep the Block Distribution as Initially Defined — 90% to Miners Draft - 1002 Opt-in Donation Feature Draft - 1003 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate Draft - 1004 Miner-Directed Dev Fund Draft - 1005 Zcash Community Funding System Draft - 1006 Development Fund of 10% to a 2-of-3 Multisig with Community-Involved Third Entity Draft - 1007 Enforce Development Fund Commitments with a Legal Charter Draft - 1008 Fund ECC for Two More Years Draft - 1009 Five-Entity Strategic Council Draft - 1010 Compromise Dev Fund Proposal With Diverse Funding Streams Draft - 1011 Decentralize the Dev Fee Draft - 1012 Dev Fund to ECC + ZF + Major Grants Draft - 1013 Keep It Simple, Zcashers: 10% to ECC, 10% to ZF Draft - 1014 Dev Fund to ECC + ZF + Major Grants Draft + 1001 Keep the Block Distribution as Initially Defined — 90% to Miners Obsolete + 1002 Opt-in Donation Feature Obsolete + 1003 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate Obsolete + 1004 Miner-Directed Dev Fund Obsolete + 1005 Zcash Community Funding System Obsolete + 1006 Development Fund of 10% to a 2-of-3 Multisig with Community-Involved Third Entity Obsolete + 1007 Enforce Development Fund Commitments with a Legal Charter Obsolete + 1008 Fund ECC for Two More Years Obsolete + 1009 Five-Entity Strategic Council Obsolete + 1010 Compromise Dev Fund Proposal With Diverse Funding Streams Obsolete + 1011 Decentralize the Dev Fee Obsolete + 1012 Dev Fund to ECC + ZF + Major Grants Obsolete + 1013 Keep It Simple, Zcashers: 10% to ECC, 10% to ZF Obsolete + 1014 Establishing a Dev Fund for ECC, ZF, and Major Grants Proposed guide {Something Short and To the Point} Draft diff --git a/zip-1001.html b/zip-1001.html index 34e899e..f8b26f6 100644 --- a/zip-1001.html +++ b/zip-1001.html @@ -9,7 +9,7 @@ 
ZIP: 1001
 Title: Keep the Block Distribution as Initially Defined — 90% to Miners
 Owner: mistfpga (zcash forums) <steve@mistfpga.net>
-Status: Draft
+Status: Obsolete
 Category: Consensus
 Created: 2019-08-01
 License: CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0/>
diff --git a/zip-1001.rst b/zip-1001.rst
index f1155bb..aec4b4f 100644
--- a/zip-1001.rst
+++ b/zip-1001.rst
@@ -3,7 +3,7 @@
   ZIP: 1001
   Title: Keep the Block Distribution as Initially Defined — 90% to Miners
   Owner: mistfpga (zcash forums) 
-  Status: Draft
+  Status: Obsolete
   Category: Consensus
   Created: 2019-08-01
   License: CC BY-SA 4.0 
diff --git a/zip-1002.html b/zip-1002.html
index ad81d65..5e4e9d3 100644
--- a/zip-1002.html
+++ b/zip-1002.html
@@ -9,7 +9,7 @@
         
ZIP: 1002
 Title: Opt-in Donation Feature
 Owner: mistfpga (zcash forums) <steve@mistfpga.net>
-Status: Draft
+Status: Obsolete
 Category: Standards Track
 Created: 2019-07-17
 License: CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0/>
diff --git a/zip-1002.rst b/zip-1002.rst
index 8f052df..562aa6e 100644
--- a/zip-1002.rst
+++ b/zip-1002.rst
@@ -3,7 +3,7 @@
   ZIP: 1002
   Title: Opt-in Donation Feature
   Owner: mistfpga (zcash forums) 
-  Status: Draft
+  Status: Obsolete
   Category: Standards Track
   Created: 2019-07-17
   License: CC BY-SA 4.0 
diff --git a/zip-1003.html b/zip-1003.html
index 4d70fbe..53471dd 100644
--- a/zip-1003.html
+++ b/zip-1003.html
@@ -9,7 +9,7 @@
         
ZIP: 1003
 Title: 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate
 Owner: aristarchus (zcash forums)
-Status: Draft
+Status: Obsolete
 Category: Consensus / Process
 Created: 2019-06-19
 License: MIT
diff --git a/zip-1003.rst b/zip-1003.rst
index a94bb5f..f40311b 100644
--- a/zip-1003.rst
+++ b/zip-1003.rst
@@ -3,7 +3,7 @@
   ZIP: 1003
   Title: 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate
   Owner: aristarchus (zcash forums)
-  Status: Draft
+  Status: Obsolete
   Category: Consensus / Process
   Created: 2019-06-19
   License: MIT
diff --git a/zip-1004.html b/zip-1004.html
index 597b24f..368085e 100644
--- a/zip-1004.html
+++ b/zip-1004.html
@@ -9,7 +9,7 @@
         
ZIP: 1004
 Title: Miner-Directed Dev Fund
 Owner: Andrew Miller (@amiller on zcash forums)
-Status: Draft
+Status: Obsolete
 Category: Consensus
 Created: 2019-06-19
 License: public domain
diff --git a/zip-1004.rst b/zip-1004.rst
index 849da47..9c25844 100644
--- a/zip-1004.rst
+++ b/zip-1004.rst
@@ -3,7 +3,7 @@
   ZIP: 1004
   Title: Miner-Directed Dev Fund
   Owner: Andrew Miller (@amiller on zcash forums)
-  Status: Draft
+  Status: Obsolete
   Category: Consensus
   Created: 2019-06-19
   License: public domain
diff --git a/zip-1005.html b/zip-1005.html
index fca1e6a..893c0a4 100644
--- a/zip-1005.html
+++ b/zip-1005.html
@@ -9,7 +9,7 @@
         
ZIP: 1005
 Title: Zcash Community Funding System
 Owner: Dimitris Apostolou <dimitris.apostolou@icloud.com>
-Status: Draft
+Status: Obsolete
 Category: Consensus
 Created: 2019-06-23
 License: MIT
diff --git a/zip-1005.rst b/zip-1005.rst
index 8fbe947..304de1f 100644
--- a/zip-1005.rst
+++ b/zip-1005.rst
@@ -3,7 +3,7 @@
   ZIP: 1005
   Title: Zcash Community Funding System
   Owner: Dimitris Apostolou 
-  Status: Draft
+  Status: Obsolete
   Category: Consensus
   Created: 2019-06-23
   License: MIT
diff --git a/zip-1006.html b/zip-1006.html
index b1ec505..121e0e0 100644
--- a/zip-1006.html
+++ b/zip-1006.html
@@ -12,7 +12,7 @@ Owners: James Todaro <james@blocktown.capital>
         Joseph Todaro <joseph@blocktown.capital>
 Credits: Mario Laul
          Chris Burniske
-Status: Draft
+Status: Obsolete
 Category: Consensus / Process
 Created: 2019-08-31
 License: MIT
diff --git a/zip-1006.rst b/zip-1006.rst
index 7d149f4..495986c 100644
--- a/zip-1006.rst
+++ b/zip-1006.rst
@@ -6,7 +6,7 @@
            Joseph Todaro 
    Credits: Mario Laul
             Chris Burniske
-   Status: Draft
+   Status: Obsolete
    Category: Consensus / Process
    Created: 2019-08-31
    License: MIT
diff --git a/zip-1007.html b/zip-1007.html
index c157fed..7d910ac 100644
--- a/zip-1007.html
+++ b/zip-1007.html
@@ -10,7 +10,7 @@
 Title: Enforce Development Fund Commitments with a Legal Charter
 Owners: @lex-node (zcash forums)
         @mistfpga (zcash forums) <steve@mistfpga.net>
-Status: Draft
+Status: Obsolete
 Category: Process
 Created: 2019-08-24
 License: CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0/>
diff --git a/zip-1007.rst b/zip-1007.rst
index b2b76d2..90cf933 100644
--- a/zip-1007.rst
+++ b/zip-1007.rst
@@ -4,7 +4,7 @@
   Title: Enforce Development Fund Commitments with a Legal Charter
   Owners: @lex-node (zcash forums)
           @mistfpga (zcash forums) 
-  Status: Draft
+  Status: Obsolete
   Category: Process
   Created: 2019-08-24
   License: CC BY-SA 4.0 
diff --git a/zip-1008.html b/zip-1008.html
index 56d3d90..fe8b3f7 100644
--- a/zip-1008.html
+++ b/zip-1008.html
@@ -10,7 +10,7 @@
 Title: Fund ECC for Two More Years
 Owners: @kek (zcash forums)
         @mistfpga (zcash forums) <steve@mistfpga.net>
-Status: Draft
+Status: Obsolete
 Category: Consensus
 Created: 2019-09-02
 License: CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0/>
diff --git a/zip-1008.rst b/zip-1008.rst
index fda3e2d..5fe94ab 100644
--- a/zip-1008.rst
+++ b/zip-1008.rst
@@ -4,7 +4,7 @@
   Title: Fund ECC for Two More Years
   Owners: @kek (zcash forums)
           @mistfpga (zcash forums) 
-  Status: Draft
+  Status: Obsolete
   Category: Consensus
   Created: 2019-09-02
   License: CC BY-SA 4.0 
diff --git a/zip-1009.html b/zip-1009.html
index c9ebd8f..3d87be5 100644
--- a/zip-1009.html
+++ b/zip-1009.html
@@ -9,7 +9,7 @@
         
ZIP: 1009
 Title: Five-Entity Strategic Council
 Owner: Avichal Garg <avichalgarg@electriccapital.com>
-Status: Draft
+Status: Obsolete
 Category: Process
 Created: 2019-08-28
 License: MIT
diff --git a/zip-1009.rst b/zip-1009.rst
index fa07e96..b5e526b 100644
--- a/zip-1009.rst
+++ b/zip-1009.rst
@@ -3,7 +3,7 @@
   ZIP: 1009
   Title: Five-Entity Strategic Council
   Owner: Avichal Garg 
-  Status: Draft
+  Status: Obsolete
   Category: Process
   Created: 2019-08-28
   License: MIT
diff --git a/zip-1010.html b/zip-1010.html
index a741f81..d03cf45 100644
--- a/zip-1010.html
+++ b/zip-1010.html
@@ -15,7 +15,7 @@ Credits: Matt Luongo
          mistfpga
          lex-node
          and many others
-Status: Draft
+Status: Obsolete
 Category: Consensus
 Created: 2019-08-31
 License: MIT
diff --git a/zip-1010.rst b/zip-1010.rst
index 4c726f0..aee6335 100644
--- a/zip-1010.rst
+++ b/zip-1010.rst
@@ -9,7 +9,7 @@
            mistfpga
            lex-node
            and many others
-  Status: Draft
+  Status: Obsolete
   Category: Consensus
   Created: 2019-08-31
   License: MIT
diff --git a/zip-1011.html b/zip-1011.html
index ef0ff2f..4e7bdb9 100644
--- a/zip-1011.html
+++ b/zip-1011.html
@@ -10,7 +10,7 @@
         
ZIP: 1011
 Title: Decentralize the Dev Fee
 Owner: Matt Luongo <matt@thesis.co>
-Status: Draft
+Status: Obsolete
 Category: Process
 Created: 2019-09-27
 License: MIT
diff --git a/zip-1011.rst b/zip-1011.rst
index 7615dee..2f2540b 100644
--- a/zip-1011.rst
+++ b/zip-1011.rst
@@ -3,7 +3,7 @@
   ZIP: 1011
   Title: Decentralize the Dev Fee
   Owner: Matt Luongo 
-  Status: Draft
+  Status: Obsolete
   Category: Process
   Created: 2019-09-27
   License: MIT
diff --git a/zip-1012.html b/zip-1012.html
index d3f0b44..c32d027 100644
--- a/zip-1012.html
+++ b/zip-1012.html
@@ -9,7 +9,7 @@
         
ZIP: 1012
 Title: Dev Fund to ECC + ZF + Major Grants
 Owner: Eran Tromer <eran@tromer.org>
-Status: Draft
+Status: Obsolete
 Category: Consensus / Process
 Created: 2019-11-10
 License: MIT
diff --git a/zip-1012.rst b/zip-1012.rst
index d4a83e0..86f67c9 100644
--- a/zip-1012.rst
+++ b/zip-1012.rst
@@ -3,7 +3,7 @@
   ZIP: 1012
   Title: Dev Fund to ECC + ZF + Major Grants
   Owner: Eran Tromer 
-  Status: Draft
+  Status: Obsolete
   Category: Consensus / Process
   Created: 2019-11-10
   License: MIT
diff --git a/zip-1013.html b/zip-1013.html
index 0817ee3..d91405a 100644
--- a/zip-1013.html
+++ b/zip-1013.html
@@ -9,7 +9,7 @@
         
ZIP: 1013
 Title: Keep It Simple, Zcashers: 10% to ECC, 10% to ZF
 Owners: Gordon Mohr (@gojomo on relevant forums)
-Status: Draft
+Status: Obsolete
 Category: Consensus / Process
 Created: 2019-11-14
 License: Public Domain
diff --git a/zip-1013.rst b/zip-1013.rst
index 8660120..da6db90 100644
--- a/zip-1013.rst
+++ b/zip-1013.rst
@@ -3,7 +3,7 @@
   ZIP: 1013
   Title: Keep It Simple, Zcashers: 10% to ECC, 10% to ZF
   Owners: Gordon Mohr (@gojomo on relevant forums)
-  Status: Draft
+  Status: Obsolete
   Category: Consensus / Process
   Created: 2019-11-14
   License: Public Domain
diff --git a/zip-1014.html b/zip-1014.html
index ee19456..bd4702f 100644
--- a/zip-1014.html
+++ b/zip-1014.html
@@ -1,14 +1,15 @@
 
 
 
-    ZIP 1014: Dev Fund to ECC + ZF + Major Grants
+    ZIP 1014: Establishing a Dev Fund for ECC, ZF, and Major Grants
     
 
 
     

         
ZIP: 1014
-Title: Dev Fund to ECC + ZF + Major Grants
-Owner: Josh Cincinnati <josh@zfnd.org>
+Title: Establishing a Dev Fund for ECC, ZF, and Major Grants
+Owners: Josh Cincinnati <josh@zfnd.org>
+        Zooko Wilcox <zooko@electriccoin.co>
 Original-Author: Eran Tromer
 Credits: Matt Luongo
          Howard Loo
@@ -16,25 +17,29 @@ Credits: Matt Luongo
          @dontbeevil
          Daira Hopwood
          George Tankersley
-Status: Draft
+Status: Proposed
 Category: Consensus / Process
 Created: 2019-11-10
 License: MIT
 Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polling-results-nu4-and-draft-zip-1014/35560>

         
Terminology 

             
The key words "MUST", "MUST NOT", "SHALL", "SHALL NOT", "SHOULD", and "MAY" in this document are to be interpreted as described in RFC 2119. 1

+            
The term "network upgrade" in this document is to be interpreted as described in ZIP 200 5 and the Zcash Trademark Donation and License Agreement (3 or successor agreement).

+            
The terms "block subsidy" and "halving" in this document are to be interpreted as described in sections 3.9 and 7.7 of the Zcash Protocol Specification. 2

+            
"Electric Coin Company", also called "ECC", refers to the Zerocoin Electric Coin Company, LLC.

+            
"Zcash Foundation", also called "ZF", refers to the 501(c)(3) nonprofit corporation of that name.

         

         
Abstract 

-            
This proposal describes a structure for the Zcash Development Fund, to be enacted in Network Upgrade 4 and last for 4 years. This Dev Fund would consist of 20% of the block rewards, split into 3 slices:

+            
This proposal describes a structure for the Zcash Development Fund, to be enacted in Network Upgrade 4 and last for 4 years. This Dev Fund would consist of 20% of the block subsidies, split into 3 slices:

             
    
                 
  • 35% for the Electric Coin Company;
    • 
                 
  • 25% for Zcash Foundation (for internal work and grants);
    • 
-                
  • 40% for additional "Major Grants" for large-scale long-term projects (decided by the Zcash Foundation, with extra community input and scrutiny).
    • 
+                
  • 40% for additional "Major Grants" for large-scale long-term projects (administered by the Zcash Foundation, with extra community input and scrutiny).
    • 
             

-            
Funding is capped at USD 700,000/month per slice. Governance and accountability are based on existing entities and legal mechanisms, and increasingly decentralized governance is encouraged.

+            
Governance and accountability are based on existing entities and legal mechanisms, and increasingly decentralized governance is encouraged.

         

         
Motivation 

-            
Starting at Zcash's first halving in October 2020, by default 100% of the block rewards will be allocated to miners, and no further funds will be automatically allocated to research, development, and outreach. Consequently, no substantial new funding may be available to existing teams dedicated to Zcash: the Electric Coin Company (ECC), the Zcash Foundation (ZF), and the many entities funded by the ZF grant program.

+            
Starting at Zcash's first halving in October 2020, by default 100% of the block subsidies will be allocated to miners, and no further funds will be automatically allocated to research, development, and outreach. Consequently, no substantial new funding may be available to existing teams dedicated to Zcash: the Electric Coin Company (ECC), the Zcash Foundation (ZF), and the many entities funded by the ZF grant program.

             
There is a need to strike a balance between incentivizing the security of the consensus protocol (i.e., mining) versus other crucial aspects of the Zcash security and functionality, such as development and outreach.

             
Furthermore, there is a need to balance the sustenance of ongoing work by the current teams dedicated to Zcash, with encouraging decentralization and growth of independent development teams.

         

@@ -44,7 +49,7 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
             
There should not be any single entity which is a single point of failure, i.e., whose capture or failure will effectively prevent effective use of the funds.

             
Major funding decisions should be based, to the extent feasible, on inputs from domain experts and pertinent stakeholders.

             
The Dev Fund mechanism should not modify the monetary emission curve (and in particular, should not irrevocably burn coins).

-            
In case the value of ZEC jumps, the Dev Fund recipients should not be allowed to wastefully use excessive amounts of funds. Conversely, given market volatility and eventual halvings, it is desirable to create rainy-day reserves.

+            
In case the value of ZEC jumps, the Dev Fund recipients should not wastefully use excessive amounts of funds. Conversely, given market volatility and eventual halvings, it is desirable to create rainy-day reserves.

             
The Dev Fund mechanism should not reduce users' financial privacy or security. In particular, it should not cause them to expose their coin holdings, nor cause them to maintain access to secret keys for much longer than they would otherwise. (This rules out some forms of voting, and of disbursing coins to past/future miners.)

             
The new Dev Fund system should be simple to understand and realistic to implement. In particular, it should not assume the creation of new mechanisms (e.g., election systems) or entities (for governance or development) for its execution; but it should strive to support and use these once they are built.

             
Comply with legal, regulatory, and taxation constraints in pertinent jurisdictions.

@@ -55,11 +60,11 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
         

         
Specification 

             
Dev Fund allocation 

-                
Starting at the first Zcash halving in 2020, until the second halving in 2024, 20% of the block rewards SHALL be allocated to a "Dev Fund" that consists of the following three slices:

+                
Starting at the first Zcash halving in 2020, until the second halving in 2024, 20% of the block subsidy of each block SHALL be allocated to a "Dev Fund" that consists of the following three slices:

                 
    
                     
  • 35% for the Electric Coin Company (denoted ECC slice);
    • 
-                    
  • 25% for the Zcash Foundation, for general use (denoted ZF-GU slice);
    • 
-                    
  • 40% for additional "Major Grants" for large-scale long-term projects (denoted ZF-MG slice).
    • 
+                    
  • 25% for the Zcash Foundation, for general use (denoted ZF slice);
    • 
+                    
  • 40% for additional "Major Grants" for large-scale long-term projects (denoted MG slice).
    • 
                 

                 
The slices are described in more detail below. The fund flow will be implemented at the consensus-rule layer, by sending the corresponding ZEC to the designated address(es) for each block. This Dev Fund will end at the second halving (unless extended/modified by a future ZIP).

                 
ECC slice (Electric Coin Company) 

@@ -73,42 +78,32 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
                     
(ECC is encouraged to transition to a corporate structure that would avoid the latter taxes.)

                     
This obligation MUST be made irrevocable, e.g., within ECC's corporate governance structure (i.e., its Operating Agreement) or contractual obligations.

                 

-                
ZF-GU slice (Zcash Foundation, for general use) 

-                    
This slice of the Dev Fund will flow to ZF, to be used at its discretion for any purpose within its mandate to support Zcash and financial privacy, including: development, education, support community communication online and via events, gathering community sentiment, and external awarding grants for all of the above.

+                
ZF slice (Zcash Foundation's general use) 

+                    
This slice of the Dev Fund will flow to ZF, to be used at its discretion for any purpose within its mandate to support Zcash and financial privacy, including: development, education, supporting community communication online and via events, gathering community sentiment, and awarding external grants for all of the above.

                 

-                
ZF-MG slice (Zcash Foundation, for major grants) 

+                
MG slice (Major Grants) 

                     
This slice of the Dev Fund is intended to fund independent teams entering the Zcash ecosystem, to perform major ongoing development (or other work) for the public good of the Zcash ecosystem, to the extent that such teams are available and effective.

-                    
The funds SHALL be received and administered by ZF. ZF MUST disburse them as "Major Grants", within the framework of ZF's grant program but subject to the following additional constraints:

+                    
The funds SHALL be received and administered by ZF. ZF MUST disburse them as "Major Grants", but subject to the following additional constraints:

                     
    
-                        
  1. These funds MUST only be used to issue Major Grants to external parties that are independent of ZF. They MUST NOT be used by ZF for its internal operations and direct expenses.
    2. 
+                        
  2. These funds MUST only be used to issue Major Grants to external parties that are independent of ZF. They MUST NOT be used by ZF for its internal operations and direct expenses. Additionally ECC and ZF are ineligible to receive Major Grants.
    3. 
                         
  3. Major Grants SHOULD support well-specified work proposed by the grantee, at reasonable market-rate costs. They can be of any duration or ongoing without a duration limit. Grants of indefinite duration SHOULD have semiannual review points for continuation of funding.
    4. 
-                        
  4. Major Grants may be issued to ECC only if there are no other proposals to perform the specified work with similar capabilities, effectiveness and cost. (The intent is that eventually ECC will not receive Major Grants.)
    5. 
-                        
  5. Priority SHOULD be given to Major Grants that bolster teams with substantial (current or prospective) continual existence, and set them up for long-term success, subject to the usual grant award considerations (impact, ability, risks, team, cost-effectiveness, etc.). Priority SHOULD be given to Major Grants that support ecosystem growth through mentorship, coaching, technical resources, creating entrepreneurial opportunities, etc. If one proposal substantially duplicates another's plans, priority SHOULD be given to the originator of the plans.
    6. 
-                        
  6. Major Grants SHOULD be awarded based on ZF's mission and values, restricted to furthering of the Zcash cryptocurrency and its ecosystem (which is more specific than furthering financial privacy in general).
    7. 
-                        
  7. Major Grants awards are subject to approval by a five-seat Major Grant Review Committee. The Major Grant Review Committee SHALL be selected by the ZF's Community Panel. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation judges them to violate the ZF's operating documents or U.S. law.
    8. 
-                        
  8. Major Grant Review Committee members SHALL have a one-year term and MAY sit for reelection. The Major Grant Review Committee is subject to the same conflict of interest policy that governs the ZF Board of Directors (i.e. they MUST recuse themselves when voting on proposals where they have a financial interest). Additionally, no one with interest in or association with the ECC may sit on the Major Grant Review Committee --- since the ECC can be a beneficiary, this avoids those potential conflicts altogether. The ZF SHALL continue to operate the Community Panel and SHOULD work toward making it more representative and independent (more on that below).
    9. 
+                        
  9. Priority SHOULD be given to Major Grants that bolster teams with substantial (current or prospective) continual existence, and set them up for long-term success, subject to the usual grant award considerations (impact, ability, risks, team, cost-effectiveness, etc.). Priority SHOULD be given to Major Grants that support ecosystem growth, for example through mentorship, coaching, technical resources, creating entrepreneurial opportunities, etc. If one proposal substantially duplicates another's plans, priority SHOULD be given to the originator of the plans.
    10. 
+                        
  10. Major Grants SHOULD be restricted to furthering the Zcash cryptocurrency and its ecosystem (which is more specific than furthering financial privacy in general).
    11. 
+                        
  11. Major Grants awards are subject to approval by a five-seat Major Grant Review Committee. The Major Grant Review Committee SHALL be selected by the ZF's Community Panel 10 or successor process.
    12. 
+                        
  12. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation judges them to violate U.S. law or the ZF's reporting requirements and other (current or future) obligations under U.S. IRS 501(c)(3).
    13. 
+                        
  13. Major Grant Review Committee members SHALL have a one-year term and MAY sit for reelection. The Major Grant Review Committee is subject to the same conflict of interest policy that governs the ZF Board of Directors (i.e. they MUST recuse themselves when voting on proposals where they have a financial interest). At most one person with association with the ECC, and at most one person with association with the ZF, are allowed to sit on the Major Grant Review Committee. "Association" here means: having a financial interest, full-time employment, being an officer, being a director, or having an immediate family relationship with any of the above. The ZF SHALL continue to operate the Community Panel and SHOULD work toward making it more representative and independent (more on that below).
    14. 
                     

-                    
ZF SHALL recognize the ZF-MG slice of the Dev Fund as a Restricted Fund donation under the above constraints (suitably formalized), and keep separate accounting of its balance and usage under its Transparency and Accountability obligations defined below.

-                    
From grant proposers' side, proposals for such grants SHALL be submitted through ZF's usual grant process, allowing for public discussion and public funding. It is intended that small one-time grants will be funded by drawing on the ZF-GU slice (where they also compete with other ZF activities), whereas large or long-duration grants will be funded from the dedicated ZF-MG slice; though this is at ZF's discretion (e.g. if there are no Major Grant applications the ZF may opt to direct the ZF-MG to smaller grants).

+                    
ZF SHALL recognize the MG slice of the Dev Fund as a Restricted Fund donation under the above constraints (suitably formalized), and keep separate accounting of its balance and usage under its Transparency and Accountability obligations defined below.

                     
ZF SHALL strive to define target metrics and key performance indicators, and the Major Grant Review Committee SHOULD utilize these in its funding decisions.

                     
Direct-grant option 

                         
It may be deemed better, operationally or legally, if the Major Grant funds are not accepted and disbursed by ZF, but rather directly assigned to the grantees. Thus, the following mechanism MAY be used in perpetuity for some or all grantees, if agreed upon by both ECC and ZF before NU4 activation:

-                        
Prior to each Network Upgrade, the Foundation SHALL publish a list of grantees' addresses and the total number of Dev Fund ZEC per block they should receive. ECC and ZF SHALL implement this list in any implementations of the Zcash consensus rules they maintain. This decision will then be, effectively, ratified by the miners as the network upgrade activates.

+                        
Prior to each network upgrade, the Foundation SHALL publish a list of grantees' addresses and the total number of Dev Fund ZEC per block they should receive. ECC and ZF SHALL implement this list in any implementations of the Zcash consensus rules they maintain. This decision will then be, effectively, ratified by the miners as the network upgrade activates.

                     

                 

-                
Monthly Funding Cap and Volatility Reserve 

-                    
Each Dev Fund slice has a Monthly Funding Cap, initially USD 700,000 for each slice. At the end of each calendar month, the fair market value of the Dev Fund ZEC received during that month will be computed, and the excess over the Monthly Funding Cap SHALL be deposited into a dedicated Volatility Reserve account by the funds' recipient. ECC and ZF SHALL describe the methodology used to calculate fair market value in relevant reports described under Transparency and Accountability.

-                    
Each slice has its own separate Volatility Reserve account, owned and managed by the recipient (ECC or ZF), but limited in how it may be used (i.e., analogously to some types of retirement or trust accounts). Funds may be withdrawn from the Volatility Reserve account only by that same party, in months where the aforementioned monthly ZEC value falls short of the Monthly Funding Cap, and only to the extent needed to cover that shortfall.

-                    
The Volatility Reserve may be kept as ZEC, or sold and held as fiat currency or investments (whose profits will remain in the Volatility Reserve).

-                    
The Monthly Funding Cap SHALL NOT be changed other than by unanimous agreement of ZF, ECC, and the majority vote of the Community Panel. (In case of excessive accumulation of reserves, the community MAY condition an increase of the Monthly Funding Cap on the redirection of some of the reserves to a different entity, miners or an airdrop.)

-                    
Dev Fund ZEC that has been received, not placed in the Volatility Reserve, and has not yet been used or disbursed, SHALL be kept by the corresponding party (as ZEC, or sold and invested) for later use under the terms of the corresponding slice.

-                    
Note that grantees of Major Grants are not directly subject to the Monthly Funding Cap, and do not have to manage a Volatility Reserve account; this is addressed upstream by the Zcash Foundation, which awards these grants. The hope is that the Foundation-managed ZF-MG Volatility Reserve will ultimately form a large long-term "endowment" pool that cushions the volatility for the various grantees, so grantees can focus on their work instead of hedging short-term price risks.

-                    
Irrevocable obligations to the above MUST be made by the recipients (e.g., using their Operating Agreements or by receiving the slice as Restricted Funds).

-                

             

             
Transparency and Accountability 

                 
Obligations 

-                    
ECC, ZF, and Major Grant recipients (during and leading to their award period) SHALL all accept the following obligations:

+                    
ECC, ZF, and Major Grant recipients (during and leading to their award period) SHALL all accept the obligations in this section.

                     
Ongoing public reporting requirements:

                     
    
                         
  • Quarterly reports, detailing future plans, execution on previous plans, and finances (balances, and spending broken down by major categories).
    • 
@@ -124,20 +119,16 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
                     

                     
ECC, ZF, and grant recipients MUST promptly disclose any security or privacy risks that may affect users of Zcash (by responsible disclosure under confidence to the pertinent developers, where applicable).

                     
ECC's reports, and ZF's annual report on its non-grant operations, SHOULD be at least as detailed as grant proposals/reports submitted by other funded parties, and satisfy similar levels of public scrutiny.

-                    
All substantial software whose development was funded by the Dev Fund SHOULD be released under an Open Source license (as defined by the Open Source Initiative 2), preferably the MIT license.

+                    
All substantial software whose development was funded by the Dev Fund SHOULD be released under an Open Source license (as defined by the Open Source Initiative 4), preferably the MIT license.

                 

                 
Enforcement 

                     
For grant recipients, these conditions SHOULD be included in their contract with ZF, such that substantial violation, not promptly remedied, will cause forfeiture of their grant funds and their return to ZF.

-                    
ECC and ZF MUST contractually commit to each other to fulfill these conditions, and the prescribed use of funds, such that substantial violation, not promptly remedied, will permit the other party to issue a modified version of Zcash node software that removes the violating party's Dev Fund slice, and use the Zcash trademark for this modified version. The slice's funds will be reassigned to ZF-MG (whose integrity is legally protected by the Restricted Fund treatment).

+                    
ECC and ZF MUST contractually commit to each other to fulfill these conditions, and the prescribed use of funds, such that substantial violation, not promptly remedied, will permit the other party to issue a modified version of Zcash node software that removes the violating party's Dev Fund slice, and use the Zcash trademark for this modified version. The slice's funds will be reassigned to MG (whose integrity is legally protected by the Restricted Fund treatment).

                 

             

             
Future Community Governance 

-                
Decentralized community governance is used in this proposal via the Community Panel in the following places:

-                
    
-                    
  1. As input into the Major Grant Review Committee which governs the ZF-MG slice (Zcash Foundation, for major grants).
    2. 
-                    
  2. For changing the Monthly Funding Cap and Volatility Reserve.
    3. 
-                

-                
It is highly desirable to develop robust means of decentralized community voting and governance --- either by expanding the Community Panel or a successor mechanism --- and to integrate them into both of these processes, by the end of 2021. ECC and ZF SHOULD place high priority on such development and its deployment, in their activities and grant selection.

+                
Decentralized community governance is used in this proposal via the Community Panel as input into the Major Grant Review Committee which governs the MG slice (Major Grants).

+                
It is highly desirable to develop robust means of decentralized community voting and governance –either by expanding the Community Panel or a successor mechanism– and to integrate them into this process by the end of 2021. ECC and ZF SHOULD place high priority on such development and its deployment, in their activities and grant selection.

             

             
ZF Board Composition 

                 
Members of ZF's Board of Directors MUST NOT hold equity in ECC or have current business or employment relationships with ECC, except as provided for by the grace period described below.

@@ -146,8 +137,8 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
             

         

         
Acknowledgements 

-            
This proposal is a limited modification of Eran Tromer's ZIP 1012 6 by the Zcash Foundation, based on feedback from the Foundation's board and the community.

-            
Eran's proposal is most closely based on the Matt Luongo 'Decentralize the Dev Fee' proposal (ZIP 1011) 5. Relative to ZIP 1011 there are substantial changes and mixing in of elements from @aristarchus's '20% Split Evenly Between the ECC and the Zcash Foundation' (ZIP 1003) 3, Josh Cincinnati's 'Compromise Dev Fund Proposal With Diverse Funding Streams' (ZIP 1010) 4, and extensive discussions in the Zcash Community Forum.

+            
This proposal is a limited modification of Eran Tromer's ZIP 1012 9 by the Zcash Foundation, the ECC, further modified by feedback from the community and the results of the latest Helios poll.

+            
Eran's proposal is most closely based on the Matt Luongo 'Decentralize the Dev Fee' proposal (ZIP 1011) 8. Relative to ZIP 1011 there are substantial changes and mixing in of elements from @aristarchus's '20% Split Evenly Between the ECC and the Zcash Foundation' (ZIP 1003) 6, Josh Cincinnati's 'Compromise Dev Fund Proposal With Diverse Funding Streams' (ZIP 1010) 7, and extensive discussions in the Zcash Community Forum.

             
The authors are grateful to all of the above for their excellent ideas and any insightful discussions, and to Howard Loo and forum users @aristarchus and @dontbeevil for valuable initial comments on ZIP 1012.

         

         
References 

@@ -159,43 +150,75 @@ Discussions-To: <https://forum.zcashcommunity.com/t/community-sentiment-polli
                     
                 
             
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                         2Zcash Protocol Specification [Overwinter+Sapling+Blossom]

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3Zcash Trademark Donation and License Agreement

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4
                         The Open Source Definition
                     

                 
             

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5ZIP 200: Network Upgrade Mechanism

             
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320% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate6ZIP 1003: 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate
                     

                 
             

             
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4Compromise Dev Fund Proposal With Diverse Funding Streams7ZIP 1010: Compromise Dev Fund Proposal With Diverse Funding Streams
                     

                 
             

             
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5Decentralize the Dev Fee8ZIP 1011: Decentralize the Dev Fee
                     

                 
             

             
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6Dev Fund to ECC + ZF + Major Grants9ZIP 1012: Dev Fund to ECC + ZF + Major Grants

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10ZF Community Advisory Panel