Zcash Community Grants has proposed redirecting about $124 million in existing and future funding toward mining rewards, as criticism grows over the committee’s size, decision-making and accountability.
What ZCG is proposing
The committee said it wants to transfer 36,200 ZEC from its treasury to the Network Sustainability Mechanism, or NSM. The mechanism reserves coins for future block rewards paid to Zcash miners.
ZCG’s treasury contains about 91,500 ZEC. The proposed transfer would leave the group with roughly 55,200 ZEC, valued at about $70 million at the time of the proposal. The figures were reported by Cointelegraph.
The plan would also involve giving up approximately 62,000 ZEC in future allocations, worth about $78.5 million based on the values cited in the proposal. In total, around 98,000 ZEC—equivalent to about $124 million—would be directed toward future block rewards through the combination of the treasury transfer and reduced future funding.
ZCG said the proposal is preliminary and that a complete version will be presented for consideration by the Zcash community. Under the current arrangement, the group’s automatic allocation is due to end in 2028. Its alternative would continue a smaller funding stream for another four years, tapering it until the 2032 halving.
Why critics object
The proposal has not ended a wider dispute about how Zcash funding should be governed. Critics argue that redirecting funds does not resolve questions about oversight or whether ZEC holders have sufficient influence over allocation decisions.
Mert Mumtaz, co-founder and chief executive of Helius, described the proposal as “nowhere near good enough.” He argued that the treasury was already too large and said funding decisions should be accountable to ZEC holders.
Gemini co-founder Tyler Winklevoss also challenged the committee’s accountability. His comments followed Mumtaz’s statement that a ZCG committee member had unfollowed him on X. Winklevoss said that conduct showed the person was not qualified to oversee $110 million.
The dispute follows an earlier proposal from Zcash co-founder Sean Bowe. Bowe called for the end of ZCG’s automatic 8% share of newly issued ZEC and suggested sending that allocation to the NSM instead. Unlike the new ZCG plan, Bowe’s proposal would leave the committee’s existing treasury untouched.
Moneyiar market picture
Moneyiar data recorded Zcash at $1,217.5366787048 as of October 25, 2026, at 22:38 +03:30. ZEC was up 1.24% over 24 hours and 9.57% over seven days.
The proposed changes put the future distribution of ZEC at the center of the debate. Mining rewards compensate miners for securing the network, while treasury allocations can fund community initiatives. The preliminary plan would shift a substantial amount from the latter toward the former, but its governance provisions remain a point of contention before any final community consideration.
