<p>The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in BCP 14 <aid="footnote-reference-1"class="footnote_reference"href="#bcp14">2</a> when, and only when, they appear in all capitals.</p>
<li>Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.</li>
<li>Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.</li>
<li>Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).</li>
<li>Block distribution is defined as the block reward minus transaction fees. <spanclass="editor-note">the protocol specification uses "block subsidy".</span></li>
<li>Spirit is defined as what is the intended outcome of the ZIP. <aid="footnote-reference-2"class="footnote_reference"href="#spirit">1</a></li>
<li>Initial promise is non-neutral language referencing the block distribution rules as initially set out. <aid="footnote-reference-3"class="footnote_reference"href="#funding">3</a></li>
<td>If there is contradiction between Spirit and any other part of the proposal that needs to be addressed, in the event it is not addressed Spirit is assumed to overrule all.</td>
<sectionid="out-of-scope-for-this-proposal"><h2><spanclass="section-heading">Out of Scope for this Proposal</span><spanclass="section-anchor"><arel="bookmark"href="#out-of-scope-for-this-proposal"><imgwidth="24"height="24"class="section-anchor"src="assets/images/section-anchor.png"alt=""></a></span></h2>
<li>The Founders’ Reward is set to expire in 2020.</li>
<li>To honour the initial promise of giving 90% of total block distribution to miners. Therefore the protocol will give them 100% of the block distribution after the first halving.</li>
<li>The existing Founders’ Reward consensus rules <aid="footnote-reference-4"class="footnote_reference"href="#spec-subsidies">4</a><aid="footnote-reference-5"class="footnote_reference"href="#spec-foundersreward">5</a> MUST be preserved.</li>
<li>Specifically, <code>FoundersReward(height)</code> MUST equal <code>0</code> if <code>Halving(height) >= 1</code>. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in <aid="footnote-reference-6"class="footnote_reference"href="#spec-subsidies">4</a> and <aid="footnote-reference-7"class="footnote_reference"href="#spec-foundersreward">5</a>.)</li>
<sectionid="implications-to-other-users"><h2><spanclass="section-heading">Implications to other users</span><spanclass="section-anchor"><arel="bookmark"href="#implications-to-other-users"><imgwidth="24"height="24"class="section-anchor"src="assets/images/section-anchor.png"alt=""></a></span></h2>
<td><ahref="https://www.rfc-editor.org/info/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"</a></td>
<td><ahref="https://electriccoin.co/blog/funding/">Zcash blog: Funding, Incentives, and Governance. February 1, 2016</a></td>
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</tbody>
</table>
<tableid="spec-subsidies"class="footnote">
<tbody>
<tr>
<th>4</th>
<td><ahref="protocol/protocol.pdf#subsidies">Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward</a></td>
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</tbody>
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<tableid="spec-foundersreward"class="footnote">
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<th>5</th>
<td><ahref="protocol/protocol.pdf#foundersreward">Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward</a></td>
