Nov. 4, 2026 — Zcash Community Grants (ZCG), the committee responsible for awarding development grants across the Zcash (ZEC) ecosystem, has withdrawn a proposal that would have steered roughly 98,000 ZEC toward future mining rewards.

In a statement issued on Tuesday, ZCG said it would no longer pursue the plan, which it had first put forward on Oct. 29. The decision marks a retreat from the committee's own attempt to shrink the money it receives: had the redirection gone ahead, a substantial block of ZEC would have moved away from the grant-making side of the ecosystem and into future mining rewards.

How Zcash development funding works

Zcash is a privacy-focused cryptocurrency that launched in 2016. It uses zero-knowledge proofs to enable shielded transactions, in which the sender, recipient, and amount can remain confidential on the public blockchain. The network is secured through proof-of-work mining, with miners earning newly issued ZEC as block rewards.

A portion of the network's issuance has historically been earmarked for development and ecosystem support. ZCG administers part of that funding, awarding grants to developers and teams building tools, applications, and infrastructure for the protocol. Because miner rewards and ecosystem funding both draw on the same pool of newly issued ZEC, how that pool is divided is a standing governance question for proof-of-work networks, since it touches both network security and ecosystem development.

With the proposal withdrawn, the existing split of issuance between development funding and mining rewards remains unchanged, and grants continue to be awarded under the arrangements ZCG already operates. For readers tracking Zcash's funding structure, any future adjustment to that split would depend on a new proposal being put forward.

This content was first published on COINOTAG.