Zcash Improvement Proposal 1014 Is Live With Updated Mining Rewards

There has been a lot of work done on the new upgrade in the Zcash network, named the Zcash Improvement Proposal 1014 which governs the further funding of the ZEC cryptocurrency. From November 2020, the financing of Zcash will change and the concrete form of the improvement proposal went with a bit of controversy in the community.

In particular, the rights and duties of the Major Grant Committee which will be responsible for awarding larger grants to external developers were at the forefront of the discussions. The Electric Coin Company (ECC) announced all of this in the Zcash news, saying that ZIP (the short name for it) 1014 is now final.

1/3: ZIP 1014 is final. It establishes a #Zcash development fund to be spread across multiple teams and establishes a governance process beyond November 2020, when the proposal is implemented into NU4. https://t.co/xd4gOVW7fa$ZEC

— Electric Coin Company (@ElectricCoinCo) February 27, 2020

As per the Zcash Improvement Proposal 1014, the running reward will continue to get to the Zcash miners at 80% for four more years. There will be 7% allocated to ECC, 5% to the Zcash Foundation and 8% to third parties for additional “major grants” for long term major projects.

As such, the majority of the development funds will go to external projects as the Technical Director of Zcash Natham Wilcox said. He also noted:

“As a result, most of the funds will go to third parties. If you are curious about Zcash, now is a good time to get involved.”

It was very questionable until the very end on how the major grants were distributed. The main question was whether the Zcash Foundation itself should be responsible for allocating the grants or whether a new Major Grant Review Committee should be established.

As the latest altcoin news and rumors show, a vote in January created a stalemate and the Zcash Foundation announced that it would merge the two proposals. As a result of this, the new Zcash Improvement Proposal 1014 stipulates that the awarding of major grants is subject to the approval of a five member committee.

The decisions of the committee are final and do not depend on the Zcash Foundation’s approval. However, the Foundation has a veto right if the committee’s decision violates ZF’s operating documents or US law.

Another new feature is that the Zcash Foundation must appoint a committee now and that it is authorized to change or modify the composition of the committee. In addition to this, the Major Grant Review Committee will be subject to a conflict of interest policy, according to which members may not decide on applications where there is an active conflict of interest.