Zcash Community Grants (ZCG), the committee funded by 8% of Zcash’s block rewards, has abandoned its own plan to shrink that funding and return some of its ZEC holdings to the network. The committee wrote in a forum post late Monday that it had “decided not to take this proposal forward,” four days after floating it.

ZCG offered one line of explanation, that “the conversation has moved quickly since then,” and put forward no replacement. The committee wrote in the same post that “the future of the Dev Fund and ZCG’s treasury is for the community to decide through Zcash’s usual governance process,” without naming a specific process or timeline. A forum moderator closed the thread on Tuesday morning.

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What ZCG Had Offered

The Oct. 29 plan, which ZCG described as “a first look, not the final proposal,” said “about 98,000 ZEC goes from ZCG to future block rewards,” part of it only if the community supported it. That ZEC would have gone to the Network Sustainability Mechanism (NSM), the protocol’s reserve for future miner payouts.

ZCG’s own chart put about 62,000 ZEC of that, the gap between its two income estimates, toward the NSM, plus the 36,200 ZEC from the treasury, out of roughly 91,500 ZEC the committee held, leaving it about 55,200. The taper would have cut ZCG and the coinholder-directed grants program about 3% a month, with both programs ending at the 2032 halving. ZCG estimated that under the taper it would receive about 47,000 ZEC, spread out to the 2032 halving, against about 109,000 ZEC by the 2028 halving under current rules.

A poll ZCG attached to the plan drew 36 voters before the committee closed it less than a minute after posting the withdrawal: 21 said yes, six asked to see the details and nine said no.

The Joint Draft Still Open

The withdrawal leaves in place a joint draft ZIP from Sean Bowe of Tachyon Group and Zooko Wilcox and Jason McGee of Shielded Labs, which Unchained reported on Oct. 30. The draft would switch off ZCG’s 8% stream, divert it to a Future Dev and Legal Defense Fund lockbox, and require the committee to send 50,000 ZEC to the NSM. By Unchained’s count, that is about 13,800 ZEC more from ZCG’s treasury than the committee itself offered. The pull request was still open on GitHub on Wednesday.

Developers had already split over where the 8% should go before ZCG floated its taper. In the closed thread, a user asked whether the committee would formally support the joint ZIP; ZCG did not reply there before the thread was closed.

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