Sean Bowe, co-founder and Zcash protocol developer, presented a proposal on October 26, 2026 to redirect the 8% share of block subsidies allocated to Zcash Community Grants into the network sustainability reserve. The coins would be accounted for without being immediately issued or spendable, keeping them out of circulation. Zcash Community Grants would stop awarding new grants while continuing to pay approved milestones, and its remaining treasury would eventually be transferred to the new fund. Still in draft form on October 27, 2026, the proposal would affect only the grants allocation, with miners retaining 80% and the coinholder-controlled fund keeping 12% until the third halving expected around 2028. It would reduce new ZEC reaching the market through grant payments, but its implications for governance and developer funding remain disputed.
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