Zcash grants would stop receiving an automatic share of newly created ZEC under a proposal from co-founder Sean Bowe outlined on October 27, 2026. The draft would redirect the program’s 8% allocation to a reserve for future mining rewards while allowing its committee to retain existing assets and continue awarding grants.

Zcash grants proposal targets new inflows, not existing assets

Bowe estimates that Zcash Community Grants, known as ZCG, has about $125 million available after outstanding grant commitments, using an illustrative ZEC price of $1,300. That is a price-dependent treasury estimate, not a stated cash balance or a current market-price quotation.

He argues that the reserves could support years of spending even if ZEC’s price falls substantially, making continued automatic funding unnecessary. His proposal also raises concerns about adding more assets to the program’s separate custody and governance arrangements.

The redirected allocation would enter the Network Sustainability Mechanism, which is designed to support future mining rewards, for the remainder of the grants funding stream’s existing term. The change would require an amendment to Zcash’s network rules; it is not an implemented cutoff.

Separate coinholder-controlled funding would remain

Bowe wants to preserve the separate 12% allocation to a coinholder-controlled fund. The Community and Coinholder Funding Model in ZIP 1016 describes the two-part structure: 8% for community grants and 12% for a fund directed by coinholder decisions. That document explains the funding model, rather than Bowe’s new cutoff proposal or his treasury estimate.

ZCG’s five-member committee is elected by a community advisory panel and selects grants without a separate coinholder vote. The larger fund instead puts grants to quarterly holder votes, subject to participation and approval requirements. Bowe’s proposal would therefore end one automatic funding stream, not all protocol funding for ecosystem grants.

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