Read the article on Zcash’s recent and dramatic vote to modify funding structure. Answer the questions and post your answers below:
1.It was founded by the community and some other investors but community transparency reports showed the ECC spending more than it took in, as well as adjustments to the previous Founder’s Reward meant to increase revenue. A poor fiscal track record isn’t the best look for a firm looking to raise community-derived funds, one source who spoke on the condition of anonymity told CoinDesk and thats why it had to be replaced.
2. The newly approved Zcash Improvement Proposal (ZIP) 1014 will now split block mining rewards 80/20 between miners and a general community fund for coin development in a similar manner to the initial Founder’s Reward. The 20 percent pool will be further split into three groups: 35 percent for the ECC, 25 percent for the Zcash Foundation and 40 percent for third-party developers.
Finally, the initial ZIP passed in the first voting round was effectively vetoed by the ECC. The ZIP placed an upper-bound dollar limit on funding the ECC through the new block reward distribution.
Votes were cast by members of the Zcash Community Forum along with a 72-person community advisory panel. Of the 112 eligible voters, 88 members cast ballots with the overwhelming majority calling for continued funding.
Finally, the initial ZIP passed in the first voting round was effectively vetoed by the ECC. The ZIP placed an upper-bound dollar limit on funding the ECC through the new block reward distribution. For a firm on the bleeding edge of privacy advancements, the company said any cap would hamstring the organization’s ability to attract talent. As such, the ECC said [it would not accept]
Zcash’s Developer Fund set to expire in November 2020, also know as the Founder’s Reward, 20 percent of block rewards were taken from miners and diverted towards Zcash’s Founders and Investors along with some assistance for continued development.
Zcash Improvement Proposal 1014 will now split block mining rewards 80/20 between miners and a general community fund for coin development in a similar manner to the initial Founder’s Reward.
The 20 percent pool will be further split into three groups: 35% for ECC, 25% for the Zcash Foundation and 40% for Third-Party Developers
Zcash Community Forum members, along with a 72 person community advisory panel.
For a firm on the bleeding edge of privacy advancements, the company said any cap would hamstring the organization’s ability to attract talent.
What was Zcash’s original funding model, and why did it need to be replaced?
20% went to Zcash founders, investors and for development. This developer fund was replaced by a community fund to allow more decentralisation.
Under the new funding model, how is the general community fund allocated?
The 20% of the block rewards are split: 35% for the ECC, 25% for the ZCash Foundation and 40% for third-party developers.
Who was included in the final vote and why?
ZEC bad holders were included in the final vote, they deserved representation.
What was ECC’s reason for rejecting an ‘upper-bound dollar limit’ on their block reward funding?
Any cap would hamstring the ECC’s ability to attract talent.
What was Zcash’s original funding model, and why did it need to be replaced?
20% of block rewards were taken from miners and diverted towards zcash´s founders and investors, it needed to be replaced for better transparency and decentralization (funding of developers oriented projects).
Under the new funding model, how is the general community fund allocated?
20% of block reward, splitted in three groups: 35% for ECC, 25% for Zcash Fundation and 40% for third-party developers.
Who was included in the final vote and why?
Votes were cast by members of the Zcash Community Forum along with a 72-person community advisory panel. Of the 112 eligible voters, 88 members cast ballots with the overwhelming majority calling for continued funding.
What was ECC’s reason for rejecting an ‘upper-bound dollar limit’ on their block reward funding?
The ZIP placed an upper-bound dollar limit on funding the ECC through the new block reward distribution. For a firm on the bleeding edge of privacy advancements, the company said any cap would hamstring the organization’s ability to attract talent. As such, the ECC said it would not accept any proposal with similar constraints.
1- 20% of block rewards were taken from miners and diverted towards Zcash´s founders and investors.
2- 20% of block reward, splitted in three groups: 35% for ECC, 25% for Zcash Fundation and 40% for third-party developers.
By members of the Zcash Community Forum along with a 72-person community advisory panel. Of the 112 eligible voters, 88 members cast ballots with the overwhelming majority calling for continued funding.
Any cap would hamstring the ECC’s ability to attract talent. As such, the ECC said it would not accept any proposal with similar constraints.
Original: 20% of block rewards went to the founders and investors with “some assistance” for the devs.
Change was needed as the devs were operating at a loss due to the research intensive nature of the project and were in danger of being unable to continue work.
ZIP 1014 now splits the 20% miner tax pool into:
3rd party devs were included to increase decentralization of development.
They claimed it would limit their ability to attract talent.
(and fill their bags)
20% of block rewards were taken from miners and diverted to the founders and investors with some assistance for continued development. It turned out they were spending more money on development than they were bringing in.
They now split block mining rewards 80/20 between miners and a general community fund for coin development which is further split into three groups: 35 percent for the ECC, 25 percent for the Zcash Foundation and 40 percent for third-party developers.
Community Forum members and 72 people from the community advisory panel. Miners were not included because of a lack of participation.
4.Any cap would hamstring the organization’s ability to attract talent.
What was Zcash’s original funding model, and why did it need to be replaced?
Known as the Founder’s Reward, 20 percent of block rewards were taken from miners and diverted towards zcash’s founders and investors along with some assistance for continued development. They spend to much.
Under the new funding model, how is the general community fund allocated?
The newly approved [Zcash Improvement Proposal (ZIP) 1014] will now split block mining rewards 80/20 between miners and a general community fund for coin development in a similar manner to the initial Founder’s Reward. The 20 percent pool will be further split into three groups: 35 percent for the ECC, 25 percent for the Zcash Foundation and 40 percent for third-party developers.
Who was included in the final vote and why?
The final vote went without miner input – since no miners participated in the first round. The foundation opted not to count miners in the second round, according to an email from Cincinnati, because of the lack of participation.
What was ECC’s reason for rejecting an ‘upper-bound dollar limit’ on their block reward funding?
The company said any cap would hamstring the organization’s ability to attract talent.
1. What was Zcash’s original funding model, and why did it need to be replaced?
Zcash’s original funding model consisted of 10% of its total supply going toward their Founder’s Reward. This model needed to be replaced because of a “poor fiscal track record” and Zcash’s drop in value alongside the entire crypto market.
2. Under the new funding model, how is the general community fund allocated?
The general community fund allocates 35% to the ECC, 25% to the Zcash Foundation, and 40% toward third-party developers.
3. Who was included in the final vote and why?
The final vote included the Zcash Community Forum and a 72-person community advisory panel. Miners were not included for lack of participation in the first round of voting. ZEC bag holders held their own vote which the ECC took under consideration; whereas, the Zcash Foundation did not.
4. What was ECC’s reason for rejecting an ‘upper-bound dollar limit’ on their block reward funding?
The ECC said that a cap would hinder its ability to attract talent.
What was Zcash’s original funding model, and why did it need to be replaced?
Using part of the 20% of the block rewards generated by the miners.
Under the new funding model, how is the general community fund allocated?
The new funding model will now split block mining rewards 80/20 between miners and a general community fund for coin development in a similar manner to the initial Founder’s Reward. The 20 percent pool will be further split into three groups: 35 percent for the ECC (Electric Coin Company), 25 percent for the Zcash Foundation and 40 percent for third-party developers.
Who was included in the final vote and why?
Votes were cast by members of the Zcash Community Forum along with a 72-person community advisory panel. Miners were not included.
What was ECC’s reason for rejecting an ‘upper-bound dollar limit’ on their block reward funding?
The company said any cap would hamstring the organization’s ability to attract talent.
Q1: Funding was provided by the Zcash community and private investors. Resource allocation was not where it needed to be and raised the question for a different funding model.
Q2: Block rewards were split between the miners and a community development fund. 80% for the miners and the remaining 20% split in between the ECC, Zcash community, and any third party developers.
Q3: 112 total voters comprising of members of the Zcash Community Forum and advisory panel, miners were not included due to lack of participation in the first round of votes.
Q4: They did not want to limit the talent they could attract by placing a cap/limit on potential rewards.