<p>The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in RFC 2119. <ahref="#rfc2119"id="id1"class="footnote_reference">2</a></p>
<p>For clarity this ZIP defines these terms:</p>
<ul>
<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. <ahref="#spirit"id="id2"class="footnote_reference">1</a></li>
<li>Initial promise is non-neutral language referencing the block distribution rules as initially set out. <ahref="#funding"id="id3"class="footnote_reference">3</a></li>
</ul>
<tableid="spirit"class="footnote">
<tbody>
<tr>
<th>1</th>
<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>
</tr>
</tbody>
</table>
</section>
<sectionid="abstract">
<h2>Abstract</h2>
<p>The spirit of this ZIP is to is to ensure that the Founders’ Reward ends. It is not the intention of this ZIP to stop protocol-based donations.</p>
<p>It is a simple short ZIP.</p>
<p>Hopefully it will be compatible with a number of other ZIPs and can be worked into them.</p>
</section>
<sectionid="out-of-scope-for-this-proposal">
<h2>Out of Scope for this Proposal</h2>
<ul>
<li>Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.</li>
<li>Future funding.</li>
<li>It does not cover other donations or revenue streams.</li>
</ul>
</section>
<sectionid="motivation">
<h2>Motivation</h2>
<ul>
<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>
</ul>
</section>
<sectionid="requirements">
<h2>Requirements</h2>
<ul>
<li>The Founders’ Reward MUST end at the first halving in October 2020.</li>
<li>This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.</li>
</ul>
</section>
<sectionid="specification">
<h2>Specification</h2>
<ul>
<li>The existing Founders’ Reward consensus rules <ahref="#spec-subsidies"id="id4"class="footnote_reference">4</a><ahref="#spec-foundersreward"id="id5"class="footnote_reference">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 <ahref="#spec-subsidies"id="id6"class="footnote_reference">4</a> and <ahref="#spec-foundersreward"id="id7"class="footnote_reference">5</a>.)</li>
<li>This specification is only meant to stop the Founders’ Reward, not protocol-based donations.</li>
<li>Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.</li>
</ul>
</section>
<sectionid="implications-to-other-users">
<h2>Implications to other users</h2>
<ul>
<li>Block distribution payouts to Founders’ Reward addresses will cease at the first halving.</li>
<li>Pools and other software need to take this into account.</li>
</ul>
</section>
<sectionid="technical-implementation">
<h2>Technical implementation</h2>
<p>This ZIP requires no changes to current consensus implementations.</p>
</section>
<sectionid="references">
<h2>References</h2>
<tableid="rfc2119"class="footnote">
<tbody>
<tr>
<th>2</th>
<td><ahref="https://tools.ietf.org/html/rfc2119">Key words for use in RFCs to Indicate Requirement Levels</a></td>
</tr>
</tbody>
</table>
<tableid="funding"class="footnote">
<tbody>
<tr>
<th>3</th>
<td><ahref="https://electriccoin.co/blog/funding/">Zcash blog: Funding, Incentives, and Governance. February 1, 2016</a></td>
</tr>
</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>
</tr>
</tbody>
</table>
<tableid="spec-foundersreward"class="footnote">
<tbody>
<tr>
<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>