Zcash (ZEC) holds near $1,280 as ZCG grant spending fight divides holders
In brief
- ZEC consolidated around $1,280 in late October with a $21.8 billion market cap, per U.Today.
- Large holders objected to ZCG's Zcash Adoption Pool and its charter powers over spending.
- Pseudonymous holder "big z" publicly said he was selling all of his ZEC.
- Sean Bowe, Naval Ravikant and Tyler Winklevoss criticized ZCG's funding model.
- ZEC settled in the $1,220–1,245 range after failing to break $1,390, U.Today said.
What set off the dispute
U.Today said the trigger wasn't a technical problem. It came from large investors objecting to how capital was being spent.
ZCG launched a program called the Zcash Adoption Pool, which directed grants toward integrating vulnerable groups such as refugees without bank access. Major holders protested because ZCG's charter lets it distribute multimillion-dollar budgets without a coinholder vote (that's how U.Today describes the charter's powers).
One of them went public.
A holder using the pseudonym "big z" announced he was selling all of his ZEC, arguing, according to U.Today, that the fund should finance cryptography rather than political manifestos.
Bowe, Ravikant and Winklevoss weigh in
Developer Sean Bowe published a manifesto on ZCG's future, calling for its funding to be revised because of the rise in the ZEC price. Investor Naval Ravikant backed the initiative, saying a $50 million cap was more than enough for community grants, U.Today reported.
ZCG's activists didn't budge. They've maintained that private money is a "humanitarian imperative" and a public good.
Gemini co-founder Tyler Winklevoss pushed back on that thesis, arguing a commercial network with transaction fees can't be a public good. He also called for Zcash development to be left to the free market.
Winklevoss compared ZCG's actions to "taxation without representation"
These are opinions from critics and supporters of the fund, as relayed by U.Today. None of them amounts to a finding of wrongdoing by ZCG.
Where ZEC trades now
ZEC failed to break above $1,390 and settled in the $1,220–1,245 range, per the outlet. It's still well below the all-time high of $1,698 set in late September. U.Today said selling pressure it attributed to whales coincided with the launch of direct ZEC deposits on the decentralized Rujira Network on October 29 (the report doesn't name a data firm behind these figures, and they haven't been independently confirmed).
The bigger question hasn't gone away. U.Today reported that the dispute over who controls Zcash's funds is still unresolved.
Frequently asked questions
Why are Zcash holders fighting over Zcash Community Grants?
Zcash Community Grants distributes part of the miners' block reward. According to U.Today, major holders protested its Zcash Adoption Pool because ZCG's charter lets it distribute multimillion-dollar budgets without a coinholder vote.
What is the Zcash Adoption Pool?
The Zcash Adoption Pool is a program launched by Zcash Community Grants. U.Today reported that it directed grants toward integrating vulnerable groups such as refugees without bank access.
What did Tyler Winklevoss say about ZCG?
The Gemini co-founder argued that a commercial network with transaction fees cannot be a public good. Per U.Today, he compared ZCG's actions to "taxation without representation" and called for Zcash development to be left to the free market.
