Crypto
Zcash Co-Founder Proposes Ending Block Reward Grants
Sean Bow, co-founder of Zcash, recommends reallocating block reward funds from grants to a sustainability reserve.
Mercation Admin
October 27, 2026 1 min read
Sean Bow, co-founder of Zcash, has proposed discontinuing the automatic allocation of 8% of block rewards to the Zcash Community Grants (ZCG) program. Instead, he suggests redirecting these funds to the Network Sustainability Mechanism reserve. Bow believes that the current grant program already holds approximately $125 million in assets, which he asserts is sufficient for its ongoing operations.
The existing funding model has been in place since November 2024, where 80% of the block reward is allocated to miners, 8% to ZCG for ecosystem development grants, and the remaining 12% goes into a separate fund whose distribution is determined by ZEC holders.


