Zcash Community Wants To Launch Sustainability Development Fund
- Shielded Labs released a project proposal for the Zcash Sustainability Fund.
- ZSF will address the network’s future security after the block reward’s end by modifying the Zcash issuance schedule and introducing a mechanism to use funds to maintain the network.
- If this ZSF is implemented, all remaining unissued ZEC will be immediately deposited into ZSF.
Shielded Labs, a new entity wholly independent of Electric Coin Co and the Zcash Foundation, has launched a project proposal on the Zcash Forum for the “Zcash Sustainability Fund (ZSF).”
According to the proposal, Shielded Labs is collaborating with Equilibrium Group to build the Zcash Sustainability Fund. Shielded Labs will finance the development of ZSF (which will be built on the protocol layer) and will leverage its expertise in the Zcash ecosystem to do so. This idea will be submitted to a discussion period of at least one month in order to control and define the course of the project, and if accepted by the community, it will be developed immediately afterward.
According to the plan, ZSF would address the network’s future security after the block reward has expired by altering the Zcash issuance schedule and providing a method to spend money to maintain the network. It maintains the supply ceiling of 21 million tokens and reduces the token emission curve while maintaining an estimated issuance rate that substitutes the four-year halving cycle.
Funds paid into the reserve are given as block rewards over time to help sustain the network. A ZSF functions similarly to an algorithmic savings account or endowment. Money is put aside for certain uses, ensuring that the Zcash network has a consistent stream of block rewards. ZSF is not dependent on any particular consensus process and may be implemented in the present proof-of-work consensus protocol, resulting in the creation of a deposit mechanism.
If this ZSF is implemented, all unissued ZEC will be promptly put into ZSF, and block reward winners will be paid straight from ZSF. The distribution of freshly produced ZEC block rewards will follow the proportionate distribution described in ZIP 1014, with 80% going to block miners and 20% going to current dev fund beneficiaries.
Binance previously said in May that it will delist “privacy coins” including ZEC and others in a number of countries, including France, Italy, Spain, and Poland. The ruling highlighted the fact that some businesses may move on their own to restrict privacy technology due to a mix of risk aversion and compliance misunderstanding.
In shielded transactions, Zcash provides a transparent transmit function as well as the ability to discreetly disclose view keys. A prospective board on privacy coins is being discussed among EU authorities, although this is still in the early stages.
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