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Zcash community votes to reserve 20% of mining rewards for development fund, while BCH community has differing opinions

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Zcash community votes to reserve 20% of mining rewards for development fund, while BCH community has differing opinions

The results of the community vote initiated by the anonymous cryptocurrency project Zcash (ZEC) have been announced. 20% of the mining rewards will be allocated to the development fund, while the remaining 80% of rewards will be distributed to miners.

Table of Contents

  • Zcash to Experience First Halving of Mining Rewards
  • Bitcoin Jesus (Roger Ver) Vetoes BCH Mining Reward Proposal

Why the Vote?

Zcash, launched in 2016, is a privacy-focused cryptocurrency project derived from Bitcoin's code with modifications for enhanced privacy features. It retained some characteristics of Bitcoin, such as the fixed total supply and approximately halving mining rewards every four years.

In Zcash's current mining mechanism, 80% of the rewards go to miners, and 20% is allocated for development-related funds. However, according to its protocol, after the halving in October 2020, all mining rewards will go entirely to miners, with no more allocation to development funds.

This raises an unresolved question for Zcash on how to secure enough funding for third-party construction and development in the future.

In response to this, the community proposed ZIP1014, aiming to create a new development fund that allocates 20% of mining rewards to infrastructure and other developments, with the following distribution:

Source: Electric Coin Company

According to an official announcement from the Electric Coin Company (ECC), the proposal has been approved and is set to be implemented in November 2020.

Bitcoin Cash Mining Reward Proposal Sparks Community Backlash

Last week, Jiang Zhuoer, CEO of mining pool operator BTC.TOP, proposed in his blog to allocate 12.5% of mining rewards to support Bitcoin Cash infrastructure development and threatened to orphan blocks that do not comply with the proposal.

In addition, Jiang's "Bitcoin Cash Infrastructure Financing Plan" has gained support from major mining pools, including Bitcoin.com, Antpool, BTC.com, and ViaBTC, representing one-third of Bitcoin Cash's total hash power, causing concerns within the crypto community about BCH's future.

However, Roger Ver, also known as Bitcoin Jesus, recently changed his stance and announced that his mining pool Bitcoin.com has decided not to support the proposal to allocate 12.5% of mining rewards to a development fund. Bitcoin.com emphasized:

Bitcoin.com will not engage in any risks that could lead to a hard fork or changes in the underlying economy unless there is a more concrete agreement, and the risk of forking is low enough to be negligible, we will not support any plans.

Further Reading

  • The Halving Market may be the Beginning of Mining Difficulty for Bitcoin Miners
  • Uzbekistan Announces: Priority to Establish "National Mining Pool" in 2020, Introducing Licensed Exchanges

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