From f7a3f3ea1262baa3e84049bebea2144f618b7b89 Mon Sep 17 00:00:00 2001 From: Matt Luongo Date: Fri, 15 Nov 2019 00:05:26 -0500 Subject: [PATCH] Replace the burn mechanism with grant funding Thanks @tromer for the extended discussion on today's Foundation grant system! More details on some issues with burn were discussed on the forum https://forum.zcashcommunity.com/t/protect-the-integrity-of-the-monetary-base-supply-schedule/35283/11 --- zip-XXXX.rst | 19 ++++++++++--------- 1 file changed, 10 insertions(+), 9 deletions(-) diff --git a/zip-XXXX.rst b/zip-XXXX.rst index fc4f322c..4726e13b 100644 --- a/zip-XXXX.rst +++ b/zip-XXXX.rst @@ -16,10 +16,9 @@ managing new Zcash development, decentralizing those development efforts, and resolving governance hangups between the Zcash Foundation and the Electric Coin Company. -These goals are accomplished via a 20% dev fee, enacted in NU4, as much as half -of which is burned in the case of a robust ZEC price. This fee will fund a -diverse group of development teams to ensure Zcash maintains best-in-class -research and engineering talent while growing a robust ecosystem. +These goals are accomplished via a 20% dev fee, enacted in NU4, This fee will +fund a diverse group of development teams to ensure Zcash maintains +best-in-class research and engineering talent while growing a robust ecosystem. Motivation ========== @@ -253,14 +252,18 @@ burned in case of extraordinary growth in the price of ZEC. The Foundation shall receive 25% of the dev fee. If the volume-weighted average price of ZEC over the month means the foundation would receive greater than -$500k that month, the Foundation shall burn enough ZEC such that their max -benefit is +$500k that month, the Foundation shall set aside enough ZEC such that their max +monthly budget is .. math:: MaxBenefit(RewardDollarAmount) = Min(500000, 500000 * \sqrt{\frac{RewardDollarAmount/500000}}) -Capping the monthly upside of the Foundation will limit growth, while +The excess ZEC should be purpose-restricted to the Foundation grants program, +ensuring the funds are earmarked to grow outside community talent and +involvement. + +Capping the monthly expenses of the Foundation will limit growth, while encouraging fiscal discipline. The remaining 75% of the dev fee shall be distributed between development teams @@ -273,8 +276,6 @@ working to maintain clients. * The remaining two thirds of the fee (50% of the total), called the "outside development fee", shall be distributed between at least two development teams, chosen semi-annually by the Foundation, coinciding with network upgrades. - Unlike those of the Foundation and principal developer, these allocations - aren't affected by market conditions, and don't carry a burn requirement. Prior to each network upgrade, the Foundation shall recommend a list of addresses and a total number of ZEC per block each address is meant to receive