Zcash co-founder Sean Bowe proposes redirecting 8% of block subsidies to network sustainability fund

Sean Bowe, a co-founder and protocol developer of Zcash, wants to turn off one of the network’s main funding taps. On October 26, 2026, Bowe introduced a draft proposal to end the 8% block subsidy stream that currently flows to Zcash Community Grants (ZCG). That value would go instead to the Network Sustainability Mechanism (NSM) reserve, where it would be held out of circulation rather than paid to grant recipients. What the proposal actually does Bowe published the idea as a draft ZIP, the Zcash equivalent of a formal improvement proposal. He also posted it to the community forum the same day. The mechanics are fairly direct. Instead of issuing the 8% allocation to grant recipients, the protocol would credit that value to the NSM Value Balance. The research describes this as producing no immediate issuance and no spendable output. The coins are effectively accounted for but parked. ZCG would not vanish overnight under the plan. It would stop approving new grants and keep paying out existing milestones from its treasury. Eventually, whatever remains in that treasury would be transferred to the NSM as well. How Zcash funding works today Following the NU6 and NU6.1 upgrades, Zcash b...