The Zcash Community Grants (ZCG) has put forward a proposal to reallocate roughly $124 million worth of ZEC tokens from its treasury and future allocations to support mining rewards. The plan involves transferring 36,200 ZEC from the group's current treasury of approximately 91,500 ZEC into the Network Sustainability Mechanism (NSM). If approved, this transfer would leave the committee with about 55,200 ZEC, valued at roughly $70 million.
In addition to the immediate transfer, the proposal suggests forgoing approximately 62,000 ZEC, or $78.5 million, in future allocations. The group also intends to taper its remaining funding until the 2032 halving event. Combined, these measures would redirect about 98,000 ZEC toward future block rewards. Under the current framework, ZCG's automatic allocation is set to conclude in 2028, whereas this alternative plan would extend reduced funding for an additional four years. The group has characterized the initiative as preliminary, noting that a full proposal will be submitted for community consideration.
Despite the financial adjustments, the move has faced sharp criticism from prominent figures in the industry who argue it fails to address core governance and accountability issues. Mert Mumtaz, co-founder and CEO of Helius, described the proposal as "nowhere near good enough," asserting that the treasury remains excessively large and that funding decisions must be accountable to ZEC holders.
Gemini co-founder Tyler Winklevoss also questioned the committee's fitness to manage such funds, citing a recent incident where a committee member unfollowed him on X. Winklevoss argued that such behavior disqualifies an individual from overseeing $110 million. This criticism follows an earlier suggestion by Zcash co-founder Sean Bowe to terminate ZCG's automatic 8% share of newly issued ZEC and redirect it to the NSM, while leaving the existing treasury untouched.
Sources: Cointelegraph.