in Bitcoin

First Zcash halving: the implementation of the ‚Canopy‘ upgrade gets underway

This update creates a fund for independent developers and eliminates the controversial „Founder’s Reward“.

Privacy coin Zcash (ZEC) celebrated its first halving on November 18: at the same time the implementation of the „Canopy“ upgrade, which establishes a development fund for the platform and removes the controversial „Founder’s Reward“, began.

The halving and upgrade took place at block number 1,046,400, just over four years after the minting of the very first ZEC at the end of October 2016.

Canopy is Zcash’s fifth major upgrade, and consists mainly of Bitcoin Future a change in the mining reward distribution criteria. Prior to this upgrade, funding for the platform’s development would have expired at the time of the first halving. The technical upgrades, on the other hand, have been relatively meagre: three improvement proposals that have changed some safety and performance parameters.

Among the changes proposed and ratified by the Zcash community is the establishment of an ecosystem development fund for the next four years.

While 80% of the rewards will still go to the miners, 8% will now be reserved for the Major Grants Fund, a fund aimed exclusively at independent developers. The remaining 12% will be shared between the Electric Coin Company, which will receive 7%, and the Zcash Foundation, which will receive the remaining 5%.

The change mainly concerns the founders and employees of ECC, while the share reserved for the company itself has been slightly increased. In addition, the inclusion of external teams in Zcash’s development environment was considered essential by the community to ensure the integrity and growth of the protocol in a decentralized manner.

Previously, 20% of the rewards that did not go to the miners were divided between ECC, the Zcash Foundation and the group of founders and investors that helped create Zcash. This is where the discussions within the community have become more heated, as the founders have so far pocketed 14.2% of the entire mining reward.

As reported by Cointelegraph, ECC recently released its „Halo 2“ source code, which should be faster and more efficient.