Zcash Co-founder Targets Community Grants in Network Funding Overhaul

The proposal, published on the Zcash Community Forum, suggests that the change take effect during the upcoming NU8 upgrade. Under this plan, ZCG would cease approving new grants immediately, though existing commitments would be honored until their milestones are met. Any remaining treasury balance would then be folded into the Network Sustainability Mechanism (NSM), a reserve designed to hold assets until their release as mining rewards in February 2031.

Bowe’s initiative stems from frustrations over ZCG’s governance, which he argues lacks sufficient oversight from ZEC holders. He pointed to a disconnect between the Zcash Community Advisory Panel (ZCAP) and the broader user base, noting that 72 of the roughly 200 ZCAP members have received grants themselves, accounting for 75% of total distributed funds. A sharp example of this tension occurred in February 2026, when coinholders voted 98.6% against a Zcash Shielded Assets initiative that the ZCAP subsequently funded with $455,000. Bowe maintains that development can remain viable through alternative channels, such as coinholder grants, private investment, and crowdfunding, without the need for the existing ZCG structure.