CryptoBriefing and crypto.news both cover Sean Bowe's proposal to redirect Zcash's 8% grant subsidy to a reserve, but they name different network upgrades as the one that would implement it.
What all sources agree on
- Sean Bowe, a Zcash co-founder, proposed redirecting the 8% of block subsidies currently allocated to Zcash Community Grants (ZCG) to the Network Sustainability Mechanism (NSM).
- The proposal calls for ZCG to stop approving new grants while continuing to pay out previously approved milestones.
- Remaining funds in ZCG's treasury would eventually be transferred to the NSM.
- The proposal does not affect the 12% allocation for the Coinholder-Controlled Fund or miners' existing share of block rewards.
- The proposal raises governance concerns about whether ZCG's committee decisions reflect the preferences of ZEC coinholders.
- As of publication, the proposal remained in draft/proposal form and had not been formally adopted.
Where the reports disagree
1Which network upgrade is associated with implementing the subsidy redirect
This sits alongside, but separate from, the upcoming NU7 network upgrade. NU7 is set to activate on approximately November 5, 2026. That upgrade is expected to cut block times to 25 seconds and introduce the initial fee-reserve mechanics for the NSM.
The proposed changes would take effect with the NU8 upgrade, while the separate 12% allocation for Coinholder Grants and the existing mining reward share would remain unchanged.
What would settle it: The published draft ZIP document and the Zcash Community Forum post containing Bowe's proposal, which would specify the target upgrade.
What to make of it
Treat the core mechanics of the proposal (8% redirect from ZCG to the NSM, end of new grant approvals, unchanged 12% coinholder allocation) as established by both outlets; do not rely on either report to determine whether the change is tied to NU7 or NU8 until the underlying ZIP document is checked.
Treat the core mechanics of the proposal (8% redirect from ZCG to the NSM, end of new grant approvals, unchanged 12% coinholder allocation) as established by both outlets; do not rely on either report to determine whether the change is tied to NU7 or NU8 until the underlying ZIP document is checked.