- Zooko Wilcox believes that the Electric Coin Company (ECC) is vital for Zcash’s decentralization and stability.
- Zcash’s Founder Reward has been a bone of contention within the community.
Zooko Wilcox, the founder of Zcash (ZEC) and the CEO of Electric Coin Company (ECC), has appealed for the creation of a new “Dev Fund.” This fund will support and enhance the future operations of Zcash. The move follows an ongoing debate over the continuation of the project’s “founder’s reward.” This issue took center stage at Zcon1 and even drove a part of the zcash community to branch off into Ycash, a new network. Wilcox wrote in an open letter to the community:
“I hope that the community will decide to renew the ‘Dev Fund’ structure, allocating coins from future block rewards for core support functions such as software development, user support, business development, regulatory and government outreach, security auditing and monitoring, educational and marketing initiatives, new protocol development, and so forth.”
He also hoped that the Zcash community will seek to “hire” the ECC to carry out these tasks. A team of investors initially bootstrapped Zcash to the tune of $3 million rather than taking the ICO path of fundraising.
The project was also set up with the plan that over the first four years, 10% of the total 21 million token supply of ZEC would be distributed to the founders (the founders’ reward) and miners. Wilcox said that the investors were given a “small slice” of ECC’s equity.
According to the letter, the original Dev Fund arose when Wilcox and Nathan Wilcox (co-founder and CTO of ECC) got the company to buyback a part of the founder’s rewards to be used for funding various operations. Wilcox and the other founders also kept aside a share of their rewards to set up the Zcash foundation. He wrote:
“We decided to do this because we thought that having an independent entity from the Electric Coin Company would be an important part of the Zcash community’s decentralization and stability in the long run.”
Wilcox also feels that once Zcash ends the founder’s reward in October 2020, a new means for funding development will be required:
“I opted for the initial Dev Fund to sunset itself, so that in the future, if Zcash were a success and a community were to grow up to support it, that community would have to collectively decide what to do next.”
A possible solution could be to allocate all the new ZEC that’s issued to the network’s miners. This will create a new Dev Fund with a percentage of new coins issued. Wilcox stated:
“This decision isn’t about the Electric Coin Company. If all of the employees of the Electric Coin Company were to board the same airplane tomorrow to go to an off-site meeting, and that plane were to crash with no survivors, the Zcash community would still be facing the exact same choice: shall we use some of the tens of millions of dollars that we’re spending on issuance every month to fund core support functions like protocol development, software support, security auditing, government outreach, educational initiatives, and business development, or shall we instead send 100% of that money to miners?” The Zcash Foundation is expected to publish a methodology for making a community decision soon. ECC will also publish a blog post stating how it will assess proposals in the next few days.
Zcash is completely compliant with FATF’s Travel Rule, claims ECC’s Jack Gavigan
Recently, popular South Korean exchange OKEx was in the news after it delisted all its privacy coins, including Monero [XMR], Zcash [ZEC], and DASH [DASH], along with several others. UpBit followed suit, delisting several privacy coins as well. Both exchanges went on to claim that the regulatory obligations arising from the Financial Action Task Force [FATF], primarily the FATF’s travel rule, was the reason behind the delisting.
FATF is an intergovernmental body that aims to prevent money laundering, terrorism financing and financing of weapons through its policies. In February 2019, the FATF had presented a draft citing Recommendation 16 or the “Travel rule.” As per the travel rule, cryptocurrency exchanges are required to keep all transaction information, with respect to the buyer and the seller. Privacy coins are designed to provide anonymity to users, an aspect contradictory to the FATF’s travel rule.
Just a few days after the aforementioned delisting episodes however, Zcash has now come out to claim that it is compliant with the FATF’s recommendations. Jack Gavigan, COO of Zcash, wrote a blog post claiming the same.
The blog post expanded on several aspects that highlighted the fact that the privacy coin Zcash and virtual asset service providers [VASPs] are indeed compatible with FATF recommendations. The FATF makes it mandatory for VASPs to undertake Customer Due Diligence [CDD] measures, while building business alliances. The post read,
“The fact that a VASP supports Zcash or that a customer intends to trade Zcash does not impact the VASP’s ability to carry out CDD checks.”
Regardless of Zcash being a privacy coin, VASP will still be able to observe a customer’s transactions, Jack Gavigan claimed. This allows virtual service providers to keep an eye on suspicious activities or unexpected behavior. Along with monitoring transactions, VASPs can also keep a record of the same. Transactional information for deposits and withdrawals like customer identity, amount, receiving address, transaction ID and the sending address can all be recorded, the blogpost added in an effort to alleviate concerns.
Zcash Price Gets Drenched in Blood Due to the Market Pressure
The market is currently under huge selling pressure. The same has caused the heavy fall in the price of the altcoins. Zcash is among the few coins, which are getting widely affected by the downtrend in the market.
We are speculating that the selling pressure would soon leave and we would have the flourishing days again. The intraday traders might not be having a good day, but in the future, they would book huge profits. The coin holds a high possibility of upsurge.
Zcash Intraday Price Analysis:
The data feed is taken from Trading View on September 19, 2019, at 10:50:16 UTC for price analysis.
Yesterday, the coin opened with an escalation. The visible jump occurred when price changed from $51 to $52 by 2.63%. The price immediately shifted to $50.30 by 3.1%. The recovery in the price took it to $53.50 by 6.37%. The intraday escalation in Zcash was of 3.90% as it closed the day at $52.87. Today, the opening hours shifted the price from $52.87 to $48.55 by 8.21%. ZEC is seen hovering around $49. The rest of the day is speculated to remain same.
The market is speculated to embark the price rally soon. Zcash (ZEC) would also be seen hitting huge counters in the market. The future holds a better time for Zcash. Hence, if the traders are picking Zcash, then their investment wouldn’t go futile.
The best-suited investment for ZEC is long term investment. The same would bring colossal profit to the traders.
Zcash Foundation, ECC resume trademark negotiation deal amid fears of fallout
Although ECC has held complete authority over the trademark since the beginning, ECC was planning to hand over partial ownership for the use of the trademark. However, Zooko Wilcox, Head of the ECC, has said that sharing veto power over the use of the trademark would have made it quite complicated for users to follow Zcash terms. In a statement released last week on the Zcash public forum, Wilcox wrote,
“The bottom line is that the previous plan to lock the trademark into a 2-of-2, double-veto governance structure with the [Zcash Foundation] has not (at least not yet) been implemented, and the trademark currently remains under the unilateral control of [the] ECC.”
Zcash Foundation published a blog on 2 September, a blogpost that informed the community about the failed negotiation with the ECC, while also halting its own efforts in sorting out the impending funding crisis on the network. The blog post by Josh Cincinnati, who also heads the Zcash foundation, wrote,
“We are delaying our community sentiment collection and any decision-making regarding NU4 until the ECC recommits to the 2-of-2 agreement that was already agreed upon.”
ECC and ZCash Foundation resumes private discussions
After failed negotiations and after the Zcash Foundation threatened to halt any further progress on the network, things have started to change for the better. Wilcox released a statement on 5 September stating that they have initiated private discussions to resume discussions on the issue. The statement assured the community that both parties can reach a mutual agreement, an agreement which would be beneficial for a “diverse set of Zcash stakeholders and community members.”
Wilcox, while addressing the recent disagreement and the blog released by Zcash foundation had said,
“Public disagreements are rarely fun, they are often unavoidable and necessary aspect of good governance.”