Grayscale reports that the Zcash protocol's funding model, which allocates 20% of block rewards to development, has driven innovation for nearly a decade. Currently, 8% of these rewards are directed to community grants, while 12% are held in a reserve lockbox for future deployment.
The network is preparing for the NU7 upgrade, scheduled for November 5, 2026. This update aims to reduce the block interval from 75 seconds to 25 seconds, effectively tripling the transaction confirmation speed.
Despite the positive outlook from Grayscale, the price of ZEC fell by approximately 25% in October 2026. However, the Grayscale Zcash Trust recorded $41.09 million in net inflows, suggesting continued institutional interest.
The current funding structure replaced the previous Founders' Reward model, which concluded with the Canopy upgrade in November 2020. Grayscale notes that while the 20% allocation percentage remained consistent, the governance and distribution methods have evolved.
