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ZIP: 1013
Title: Keep It Simple, Zcashers: 10% to ECC, 10% to ZF
Owners: Gordon Mohr (@gojomo on relevant forums)
Status: Obsolete
Category: Consensus Process
Created: 2019-11-14
License: Public Domain
Discussions-To: <>
Pull-Request: <>
The key words "MUST" and "SHOULD" in this document are to be interpreted as
described in BCP 14 [#BCP14]_ when, and only when, they appear in all capitals.
The terms below are to be interpreted as follows:
Electric Coin Company, a US-based limited-liability corporation.
Zcash Foundation, a US-based non-profit corporation.
a regularly-scheduled discontinuity where the rate of ZEC issuance halves,
expected first in roughly October 2020 then next in roughly October 2024.
This ZIP proposes:
After the 1st Zcash Halvening, when the "Founders 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 ZF. Continue this
allocation until the 2nd Halvening.
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 (ZF), 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
However, no existing ZIPs explicitly propose the most simple variation
on this theme - one that maintains maximal continuity with prior practice.
This 'Keep It Simple, Zcashers' ZIP aims to fill that gap.
This proposal intends to be easy to describe, understand, and implement.
This proposal does not seek to propose any particular course of action
past the 2nd Halvening.
To implement this ZIP, the Zcash protocol and compatible software MUST:
* 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 ZF;
* deliver these ZEC to addresses provided by the recipients, in a manner
analogous to the original "Founders Reward" consensus-encoded block
rewards, or any other technically- and/or legally- preferred method
agreed to by the ECC & ZF.
This proposal specifically refrains from adding any new conditions or
procedural formalities, technical or legal, on the delivery of development
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.
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
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
* 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 "Founders Reward"-era development-funds, roughly 15% has been
directed to the ZF. (Or, about 3 points of the full 20 points of bootstrap-
funds.) However, from its later start, the ZF has recently grown its
technical, grantmaking, and organizational capabilities, and wide sentiment in
the Zcash community, ECC, and ZF desires the ZF 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.
.. [#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" <>`_