Zcash co-founder and protocol developer Sean Bowe presented a draft proposal on October 26, 2026, to end automatic block-reward funding for Zcash Community Grants (ZCG). It would redirect ZCG’s 8% share to the Network Sustainability Mechanism, where the funds would be accounted for without immediately entering circulation.
ZCG could still use its existing reserves for grants, and the rules for managing those reserves would not change. The proposal has not been approved and does not specify an activation block. It is expected to take effect after the NU7 upgrade.