ZIP-####-KISZ.rst "Keep It Simple, Zcashers (KISZ): 10% to ECC, 10% to ZFnd"

zip-####-KISZ.rst

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+::
+
+  ZIP: Unassigned 
+  Title: Keep It Simple, Zcashers (KISZ): 10% to ECC, 10% to ZFnd
+  Owners: Gordon Mohr (@gojomo on relevant forums)
+  Status: Draft
+  Category: Process
+  Created: 2019-11-14
+  License: Public Domain
+
+Terminology
+===========
+
+The terms below are to be interpreted as follows:
+
+ECC
+  Electric Coin Company, a US-based limited-liability corporation
+ZFnd
+  Zcash Foundation, a US-based non-profit corporation
+Halvening
+  a regularly-scheduled discontinuity where the rate of ZEC issuance halves, 
+  expected first in roughyl October 2020 then next in roughly October 2024
+
+
+Abstract
+========
+
+This ZIP proposes:
+
+After the 1st Zcash Halvening, when the "Founder's Reward" system-bootstrapping 
+protocol-based development funding expires, continue to direct 20% of new 
+ZEC issuance to development-related activities for ongoing  research, development, 
+innovation, and maintenance of Zcash. 
+
+Assign half of such funds to the ECC, and half to the ZFnd. Continue this 
+allocation until the 2nd Halvening. 
+
+Motivation
+==========
+
+There have been many proposals for potential allocations of Zcash block 
+rewards (ZEC inflation) after the 1st Halvening. Many cluster around similar 
+broad parameters:
+
+* 20% of block rewards for continuing development efforts;
+* provided to some combination of the Electric Coin Company (ECC), 
+  Zcash Foundation (ZFnd), and other named or to-be-determined entities;
+* conditioned on certain new allocation formulas or management practices, 
+  often involving novel entities, personnel, and feedback/deliberation 
+  processes
+
+However, no existing ZIPs explicitly propose the most simple variation 
+on this theme - one that maintains maximal continuity with prior practice. 
+This 'KISZ' ZIP aims to fill that gap. 
+
+Requirements
+============
+
+This proposal intends to be easy to describe, understand, and implement.
+
+Non-requirements
+================
+
+This proposal does not seek to propose any particular course of action 
+past the 2nd Halvening.
+
+Specification
+=============
+
+To implement this ZIP, the Zcash protocol and compatible software should:
+
+* maintain a 20% allotment of new ZEC issuance to development activities 
+  through to the 2nd Halvening event (expected around October 2024)
+* formalize a 50-50 relative allocation between the ECC and ZFnd
+* deliver these ZEC to addresses provided by the recipients, in a manner 
+  analogous to the original "Founder's Reward" consensus-encoded block 
+  rewards, or any other technically- and/or legally- preferred method 
+  agreed-to by the ECC & ZFnd
+  
+This proposal specifically refrains from adding any new conditions or 
+procedural formalities, technical or legal, on the delivery of development
+funds. 
+
+There is only the expectation that these recipients should continue the 
+stated missions, practices of transparency, and responsiveness to community 
+input that they have demonstrated thus far.
+
+
+Discussion
+==========
+
+This proposal primarily differs from similar proposals in two ways: (1) it places
+no new comditions/processes on the disbursement of ZEC development funds; (2) it 
+specifies a fixed, 50-50 division-of-funds between the ECC and ZFnd. 
+
+These differences are motivated by a desire for simplicity and continuity. This
+allocation can be implemented technically without novel institutions, processes, 
+or legal agreements. 
+
+Rather than relying on lists-of-conditions with underspecified enforcement or 
+dispute-resolution mechanisms, the adequate performance of fund recipients is
+expected due to:
+
+* aligned incentives, especially the fact that the value of all funds received 
+  over 4 years depends completely on the continued health & growth of the Zcash 
+  ecosystem
+* proven records of dedication to the Zcash project, and effective efforts on 
+  related projects, by receipient entities & personnel – even in the absence 
+  of formalized funding conditions
+  
+From original "Founder's Reward"-era development-funds, roughly 15% has been directed
+to the ZFnd. (Or, about 3 points of the full 20 points of bootstrap-funds.) However, 
+from its later start, the ZFnd has recently grown its technical, grantmaking, and
+organizational capabilities, and wide sentiment in the Zcash community, ECC, and ZFnd 
+desires the ZFnd grow to a role of equivalent or greater importance as the ECC for 
+long-term Zcash evolution. Thus this proposal specifies a 50:50 split of future 
+development funds, rather than continuing any prior proportions.