Zcash was introduced in 2016, and one of the unique features about the cryptocurrency is the fact that it uses cutting edge technology plus cryptography to give its users enhanced protection and privacy. The decentralized and open-source crypto was designed to shield the recipient, sender, and value from prying eyes. Considering that the blockchain technology is transparent and allows people see transactions without been able to alter or manipulate them, Zcash saw that as a privacy, safety, and security flaw that needed to be corrected, and so, Zcash was created to take care of the flaws.
Back in 2019, there was a move by Zcash Foundation, Electric Coin Company (ECC), Zcash community members and investors to come together and refresh the governance system. According to Zooko Wilcox, the Co-founder of Zcash, and CEO of ECC, he described the move as one that was painful in an emotional way. The process saw the approval of a new funding structure slated to begin sometime in October, 2020. In an interview between Coindesk and Josh Cincinnati, the executive director of Zcash Foundation, Coindesk asked whether there were plans to create an efficient, effective, and sustainable system to facilitate the funding of Zcash’s development.
Cincinnati in his reply said that the most important thing about funding of a public system was to ensure that the process was legitimate, and that the whole community was involved in the decision, since the community was involved in the functionality of the protocol. According to him, the development of Zcash is quite expensive, and that is due the fact that the protocol’s core functionality is centered on cutting edge technology.
According to a Coindesk report in 2019, Wilcox had mentioned that the reward set for Zcash’s founder was supposed to end after four years from inception, and that he intended to bring the issue up again after the retirement of the reward. At the EthDenver event that took place sometime in February, 2020, Cincinnati and Wilcox agreed to mutually support a new program from Zcash called the ‘Zcash Improvement Program’, which is expected to start operations in October, 2020. With the new funding system, the two firms are expected to receive about 20% of the rewards of mining on the network, which will invariably be put aside to facilitate the development of the cryptocurrency.
According to Josh Cincinnati, the whole process looks like a promising compromise that gives Zcash foundation and the Electric Coin Community the privilege to receive funding; however, he believes that the two organizations need to be firm with accountability in order not to run the business aground. A lot could happen between now and the expected milestone in October, 2020, so the community is expected to continue their Zcash investments and transactions, and anticipate the new development that is intended to kick off later this year.
Zcash has built a reputation for itself since 2016, and will do everything within their ability to ensure that the reputation does not wane, but get stronger and better.