According to Woofun AI, Zcash will celebrate its 10th anniversary on October 28, after ten years of protocol upgrades and iterations. The Grayscale Agency notes that one of the reasons this privacy-focused cryptocurrency network can continue to grow is that it has made a unique decision to use 20% block rewards to support developers and ecosystem construction.
On its 10th anniversary, Zcash adopted a development model that was very different from Bitcoin. Prior to the anniversary, the Grayscale agency emphasized the network's built-in financing mechanism, believing that it was this kind of agreement-level financial support for R&D that enabled Zcash to continuously launch new technology upgrades over multiple cryptocurrency development cycles.
Currently, miners receive 80% of the ZEC block rewards, while the other 20% is used to support the development of related projects. This structure provides a stable source of funding for Zcash without relying entirely on venture capital or private donations.
According to data compiled by Woofun AI, currently, the Dev Fund (Dev Fund) uses 8% of block rewards for the Zcash Community Grant Program (ZCG), and another 12% for financing mechanisms controlled by coin holders. However, this structure may change. Zcash's co-founder and protocol developer Sean Bowie submitted a draft improvement proposal to eliminate the 8% block subsidy allocated to ZCG and switch it to a network sustainability mechanism (NSM). According to the proposal, these ZECs will not immediately enter the market circulation, but will be put on hold. Bowie believes that ZCG's existing reserves are sufficient to continue providing funding to support the grant program. The proposal will not touch ZCG's existing funding pool, while retaining the original 12% grant ratio, the share of block rewards received by miners, and the maximum circulation of ZEC. The proposal will require a subsequent network upgrade to take effect, and ZEC, which is transferred to NSM, is not expected to be released until February 2031.
This discussion shows how Zcash's funding model continues to evolve as the technology it supports evolves.
Zcash's most notable technological advancements are reflected in its privacy protection mechanisms. The network first introduced the “Sprout” mechanism, followed by “Sapling” in 2018, and “Orchard” in 2022. In 2026, the “Ironwood” upgrade not only solved the problem of code vulnerabilities, but also introduced quantum-recoverable (quantum-recoverable) mechanisms and formal verification technology. Formal verification uses mathematical methods to confirm whether software has specified security features. It is an increasingly important security measure for privacy protection infrastructure. Each new generation of privacy protection mechanisms actually reconstructs part of Zcash's privacy architecture rather than leaving the original design unchanged.
Grayscale anticipates that future developments will increasingly focus on improving transaction processing capabilities, preparing for the post-quantum era, and dealing with cybersecurity risks brought about by artificial intelligence. This is important because privacy-focused cryptocurrencies face extremely serious security challenges — the network must protect both the security of users' funds and the confidentiality of their transactions. As a result, Zcash's 10th anniversary comes at a critical time. After a decade of development funded by agreement funding, the question is no longer whether this model can fund innovation, but how Zcash should properly allocate these resources as its priorities shift to quantum security, sustainability, and next-generation privacy protection technology.
The development team of Zcash's full-node client, Zakura, proposed a new privacy protection mechanism to protect Zcash transactions made through Near Intents, with the aim of preventing future quantum computer attacks. Written by Emmanuel Musa. Daily report time: October 27, 2026 at 10:30 p.m. (EST). BTC price: $80,813 (1.21% increase). ETH price: $2,354 (1.70% increase).