Zcash Community Grants Committee withdraws proposal to adjust 98,000 ZEC in funding, community governance controversy continue

Zcash's five-member Community Grants Committee (ZCG) withdrew a proposal on November 3 that would have redirected 36,200 ZEC from its roughly 91,500 ZEC reserve into the Network Sustainability Mechanism to top up miner block rewards, following community opposition to the October 29 plan. The move would have cut the committee's expected funding through the 2028 halving to about 47,000 ZEC from roughly 109,000 ZEC. The dispute centers on ZCG's automatic allocation of 8% of new ZEC issuance—about 144 tokens per day—which it distributes without token-holder votes, and scrutiny intensified after ZCG-funded project ZECsy promoted private payments at an adult-industry expo in New Jersey. Alternative reforms remain unresolved, including scrapping ZCG's automatic funding, shifting part of the allocation into reserves with new development and legal defense funds, or keeping the 8% share but changing funding priorities. Until a network upgrade changes the rules, ZCG continues to receive about 144 ZEC daily, and how the community restructures that flow is the next thing to watch.