opportunities, etc. If one proposal substantially duplicates another's
plans, priority SHOULD be given to the originator of the plans.
4. Zcash Community Grants SHOULD be restricted to furthering the Zcash
cryptocurrency and its ecosystem (which is more specific than furthering
financial privacy in general).
5. Zcash Community Grants awards are subject to approval by a five-seat Zcash
Community Grants Committee. The Zcash Community Grants Committee SHALL be
selected by the ZF's Zcash Community Advisory Panel (ZCAP) or successor
process.
6. The Zcash Community Grants Committee's funding decisions will be final,
requiring no approval from the FPF Board, but are subject to veto if FPF
judges them to violate Cayman law or the FPF's reporting requirements and
other (current or future) obligations under the Cayman Islands’ Companies
Act (2023 Revision) and Foundation Companies Law, 2017.
7. Zcash Community Grants Committee members SHALL have a one-year term and MAY
sit for reelection. The Zcash Community Grants Committee is subject to the
same conflict of interest policy that governs the FPF 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 BP/ECC,
at most one person with association with the ZF and at most one person with
association with the FPF, are allowed to sit on the Zcash Community Grants
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.
8. A portion of the ZCG Slice shall be allocated to a Discretionary Budget,
which may be disbursed for expenses reasonably related to the
administration of Zcash Community Grants. The amount of funds allocated to
the Discretionary Budget SHALL be decided by the ZF's Zcash Community
Advisory Panel or successor process. Any disbursement of funds from the
Discretionary Budget MUST be approved by the Zcash Community Grants
Committee. Expenses related to the administration of Zcash Community Grants
include, without limitation the following:
* Paying for operational management and administration services that
support the purpose of the Zcash Community Grants program.
* Paying third party vendors for services related to domain name
registration, or the design, website hosting and administration of
websites for the Zcash Community Grants Committee.
* Paying independent consultants to develop requests for proposals that
align with the Zcash Community Grants program.
* Paying independent consultants for expert review of grant applications.
* Paying for sales and marketing services to promote the Zcash Community
Grants program.
* Paying third party consultants to undertake activities that support the
purpose of the Zcash Community Grants program.
* Reimbursement to members of the Zcash Community Grants Committee for
reasonable travel expenses, including transportation, hotel and meals
allowance.
The Zcash Community Grants Committee's decisions relating to the allocation
and disbursement of funds from the Discretionary Budget will be final,
requiring no approval from the FPF Board, but are subject to veto if FPF
judges them to violate Cayman law or the FPF's reporting requirements and
other (current or future) obligations under Cayman law.
9. A portion of the Discretionary Budget MAY be allocated to provide
reasonable compensation to members of the Zcash Community Grants Committee.
The time for which each Committee member is compensated SHALL be limited to
the hours needed to successfully perform their positions, up to a maximum
of 15 hours in each month, and MUST align with the scope and
responsibilities of that member's role. The compensation rate for each
Committee member SHALL be $115 per hour (and therefore the maximum
compensation for a Committee member is $1725 per month). The allocation and
distribution of compensation to committee members SHALL be administered by
FPF. Changes to the hours or rate SHALL be determined by the ZF’s Zcash
Community Advisory Panel or successor process.
As part of the contractual commitment specified under the `Enforcement`_ section
below, FPF SHALL be contractually required to recognize the ZCG 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.
Transparency and Accountability
-------------------------------
Obligations
~~~~~~~~~~~
BP, ECC, ZF, FPF and Zcash Community 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).
* Monthly developer calls, or a brief report, on recent and forthcoming tasks.
(Developer calls may be shared.)
* Annual detailed review of the organization performance and future plans.
* Annual financial report (IRS Form 990, or substantially similar
information).
These reports may be either organization-wide, or restricted to the income,
expenses, and work associated with the receipt of Dev Fund. As BP is the
parent organization of ECC it is expected they may publish joint reports.
It is expected that ECC, ZF, FPF and Zcash Community Grant recipients will be
focused primarily (in their attention and resources) on Zcash. Thus, they MUST
promptly disclose:
* Any major activity they perform (even if not supported by the Dev Fund) that
is not in the interest of the general Zcash ecosystem.
* Any conflict of interest with the general success of the Zcash ecosystem.
BP, ECC, ZF, FPF 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).
BP's reports, 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 [#osd]_), preferably the MIT license.
The ZF SHALL continue to operate the Zcash Community Advisory Panel and SHOULD
work toward making it more representative and independent (more on that below).
Enforcement
~~~~~~~~~~~
For grant recipients, these conditions SHOULD be included in their contract
with FPF, such that substantial violation, not promptly remedied, will cause
forfeiture of their grant funds and their return to FPF.
BP, ECC, ZF and FPF 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 parties 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 ZCG (whose integrity is legally protected by the
Restricted Fund treatment).
Amendments and Replacement of the Dev Fund
------------------------------------------
Nothing in this ZIP is intended to preclude any amendments to the Dev Fund
(including but not limited to, changes to the Dev Fund allocation and/or the
addition of new Dev Fund recipients), if such amendments enjoy the consensus
support of the Zcash community.
Nothing in this ZIP is intended to preclude replacement of the Dev Fund with a
different mechanism for ecosystem development funding.
BP, ECC, ZF and FPF SHOULD facilitate the amendment or replacement of the Dev
Fund if there is sufficient community support for doing so.
Future Community Governance
---------------------------
Decentralized community governance is used in this proposal via the Zcash
Community Advisory Panel as input into the Zcash Community Grants Committee
which governs the `ZCG slice (Zcash Community Grants)`_.
It is highly desirable to develop robust means of decentralized community
voting and governance, either by expanding the Zcash Community Advisory Panel
or a successor mechanism. BP, ECC, FPF and ZCG 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.
The Zcash Foundation SHOULD endeavor to use the Zcash Community Advisory Panel
(or successor mechanism) as advisory input for future board elections.
FPF Board Composition
--------------------
Members of FPF's Board of Directors MUST NOT hold equity in ECC or have current
business or employment relationships with ECC.
Acknowledgements
================
This proposal is a modification of ZIP 1014 [#zip-1014]_ by the Zcash Foundation based on
feedback and suggestions from the community.
ZIP 1014 is a limited modification of Eran Tromer's ZIP 1012 [#zip-1012]_
by the Zcash
Foundation and ECC, further modified by feedback from the community.
Eran's proposal is most closely based on the Matt Luongo 'Decentralize the
Dev Fee' proposal (ZIP 1011) [#zip-1011]_. 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) [#zip-1003]_, Josh Cincinnati's
'Compromise Dev Fund Proposal With Diverse Funding Streams' (ZIP 1010) [#zip-1010]_, and
extensive discussions in the `Zcash Community Forum`_, including valuable comments
from forum users *@aristarchus* and *@dontbeevil*.
.._Zcash Community Forum: https://forum.zcashcommunity.com/
References
==========
..[#BCP14]`Information on BCP 14 — "RFC 2119: Key words for use in RFCs to Indicate Requirement Levels" and "RFC 8174: Ambiguity of Uppercase vs Lowercase in RFC 2119 Key Words" <https://www.rfc-editor.org/info/bcp14>`_
..[#protocol]`Zcash Protocol Specification, Version 2021.2.16 or later <protocol/protocol.pdf>`_
..[#protocol-networks]`Zcash Protocol Specification, Version 2021.2.16. Section 3.12: Mainnet and Testnet <protocol/protocol.pdf#networks>`_
..[#trademark]`Zcash Trademark Donation and License Agreement <https://electriccoin.co/wp-content/uploads/2019/11/Final-Consolidated-Version-ECC-Zcash-Trademark-Transfer-Documents-1.pdf>`_
..[#osd]`The Open Source Definition <https://opensource.org/osd>`_