The development fund for the Zcash cryptocurrency is approaching its end in November, raising uncertainty about the future of Zcash-focused initiatives. ECC CEO Josh Swihart has expressed concerns that the current funding model may not provide sufficient support for these organizations to continue operating as before. He pointed out that the reduction of block rewards in November would make the current allocation insufficient to meet the financial needs of ECC and the Zcash Foundation at the current price of ZEC. In response to these challenges, ECC has announced that it will not accept funds directly from the protocol under a new development fund.
The firm’s wallet address will no longer be encoded in the protocol. Instead, ECC has proposed two options for the Zcash community: allowing the development fund to expire or transitioning to a grants-based model that would increase decentralization and community participation in decision-making. As a result of these developments, the price of ZEC surged by nearly 10% to $22.8, according to CoinMarketCap data.