Zcash Surges as Community Votes to Redistribute Crypto Mining Rewards
Proposals to distribute crypto mining rewards to project development have been coming thick and fast recently. Zcash is the latest community to agree to do this and the privacy token is surging today as a result.
Crypto Mining Rewards Redistributed
A group that supports the development of Zcash announced that the community has voted to distribute 20% of the ZEC mining rewards back into the development of the project.
Electric Coin Company (ECC) recently tweeted the results with a link to the poll which outlines the next steps for the privacy focused crypto coin.
Hear, hear! 🙌
"Congratulations to everyone in the #Zcash community who participated in this historic process; this is truly a remarkable feat, and we are honored to have played our part in stewarding the dev fund discussion and resolution." https://t.co/44MRUZzbxW
— Electric Coin Company (@ElectricCoinCo) January 30, 2020
The announcement of ZIP Poll 1014 stated that the results are quite clear from the 88 of the 119 eligible voters. The share from the miners will be divided up between the relevant parties.
“The community is clearly in favor of ZIP 1014, with ECC receiving 35% of the four-year dev fund, the Foundation receiving 25%, and Major Grants receiving 40%.”
A recent blog post by ECC’s Josh Swihart explained that for four years 80% of the ZEC miner reward went to miners, while 15% was allocated to investors and founders and 5% was allocated to core development.
He added that the 15% ‘Founder’s Reward’ is due to expire in November so the Zcash Foundation decided to poll the community to derive a new funding plan for development.
The recently concluded poll results came to consensus at 20% to go into a newly created development fund with the remaining 80% going to the miners.
Bitcoin Cash leaders proposed something similar last week when they decided on 12.5% of the crypto block reward to be channeled into development but this was widely criticized over centralization concerns.
Litecoin founder Charlie Lee has also recently proposed something similar with just 1% so these options for keeping crypto projects afloat are becoming more commonplace.
ZEC Market Reaction
Zcash prices have reacted strongly to the news, surging 10% on the day to top out just below $70 a couple of hours ago. ZEC is now at a six month high, priced where it was back at the beginning of August when crypto markets were falling.
ZEC has made a whopping 140% since the beginning of the year when it was priced at just $28. It is one of the best performing altcoins of 2020 and is moving back up the market cap charts, currently at 25 with $590,000.
Mining reward redistribution proposals are likely to gain traction this year as proof of work based crypto projects seek new ways to source funding for further development.
How high will Zcash prices climb this year? Add your predictions below.