As the Zcash (ZEC) community prepares to usher in a prediction price game to their ecosystem, it has emerged that there is an investor discontent brewing that might shake the entire system to its roots. The controversy is centered on the platform foundation and touches on the sensitive Zcash Ecosystem Fund (ZEF). As much is a healthy argument, it might make or break one of the most respected privacy coin the crypto verse.
Zcash has been public shy for a while and the under the scenes happenings seem to have affected the coin recent performance casting doubts as to whether the coin is headed for a hardfork. Crypto enthusiasts and commentators appear to have put the coin on the sidelines. However, the coin has remained as the only alternative to the much needed privacy in the blockchain realm.
Zcash (ZEC) Investor Proposal Opposition
The investor proposal that the Zcash foundation appears to be wishing away seeks to change the mining reward system where more funds need to be directed into funding new projects rather than dishing such funds to Zcash stakeholders. If implemented, it will mean an overhaul of the mining reward system.
Zcash (ZEC) Foundation is the ecosystem arm that manages and runs the privacy coin with support from the company Zcash. These two entities argue that it will be unfair to terminate the Founders’ Rewards citing unfairness despite the ZEF idea being a positive one but should be financed from pledges.
According to a proposal to ZEF from one of the investors, Erick Meltzer of INBlockchain investment firm seeks to turn Zcash into commercial venture capital entity. This fund, according to him should be used in funding projects like exchanges, mobile wallets and network security enhancement. The projects should in return fund the Founders’ Reward initiative.
In respond the head of Zcash Company, Zooko Wilcox, said through a tweet:
Eric seems to be pushing for an efficient ZEF and his proposal should be put into consideration. The document does not come with finality and added that:
“This should not be treated as a final document, but rather as a ‘request for comments’ to the Zcash community.”
The document seeks to delink the financial rights distribution to third parties; Zcash founders, without the community’s consent. This was met with a lot of resistance with Ariel Gabizon, a Zcash company cryptographer arguing that:
“The founders’ shares are theirs, like your salary and savings are yours. It is fine to suggest to someone – you should spend your money this way, you should donate to that cause, etc. […] It’s not fine to pose as a question to the community – what should we do with this person’s money? That question implies it’s the community’s decision and doesn’t require the person’s consent.”
Zcash (ZEC) Price Prediction Game
Despite the controversy, Zcash (ZEC) seems focused on improving their network and this has made the ZEC price highly unpredictable. The coin has had a fair share of losses in the last three months and critics’ appear to think the coin is going down. However, the privacy properties of the networks seem to be holding the coins value together for long.
With ZEC holder having two transaction options, the coin still remains the natural choice for privacy fanatics and this has seen the ZEC price remains stable. At the time of reporting, the ZEC coin was trading at $154.19 after shedding 4.28% to the dollar and 1.56% to Bitcoin. However, the losses are not isolated to ZEC but a ripple effect that is cascading throughout the market with market leaders getting the most heat.