Haseeb Qureshi, managing partner at Dragonfly, has proposed ending the Zcash Development Fund (Dev Fund) after the current funding cycle expires in 2028. He argues that while the fund was necessary for early development, it should not exist indefinitely to ensure the protocol becomes a dependable store of value.
The current funding model, active until the third halving in 2028, allocates 20% of block rewards to ecosystem development. This includes 8% for Zcash Community Grants and 12% for the Coinholder-Controlled Fund. According to ZecStats, the Lockbox currently holds 63,987 ZEC, valued at approximately $95 million.
Qureshi identified key technical priorities before the protocol rules are finalized, including the Tachyon project, quantum resistance, and formal verification. He warned that extending the fund could lead to increased institutionalization and political issues regarding grant distribution.
The proposal has sparked debate among industry participants. Paradigm co-founder Matt Huang supports maintaining the fund for public goods, while Winklevoss Capital analyst Maxime Desalle advocates for its complete removal to avoid governance conflicts. ZEC is currently trading above $1,460 with a market capitalization of $24.7 billion.
