Zcash’s first halving coincided with the fifth major update, dubbed Canopy, which removed the controversial “Founders’ Reward”
The blockchain Zcash (ZEC) suffered its first halving today, reducing the block’s rewards for miners from 6.25 ZEC ($ 391) to 3.25 ZEC ($ 196).
As well as the Bitcoin halving, the Zcash blockchain is programmed to cut miners’ rewards in half every four years. This is done to avoid potential inflation caused by an overabundance of currencies and retain (or perhaps increase) the value of the cryptocurrency.
Coinciding with the first halving, the Zcash developers also implemented the fifth major network update, called Canopy. Its main changes mainly address some of the community’s concerns about how the rewards were distributed.
– Electric Coin Company (@ElectricCoinCo) November 18, 2020
“Activated in block 1046400!
Canopy is the fifth major network update for #Zcash, and coincides with Zcash’s first halving. ”
First, the update removed the so-called “Founders’ Reward”. Prior to Canopy, 20% of all mining rewards were shared between the Electric Coin Company (which develops the blockchain), the Zcash Foundation and the initial founders of Zcash. In total, the latter received more than 14% of all mining rewards – much to the community’s dismay.
“Canopy establishes a new development fund, largely aimed at new entrants to improve, build, extend and support Zcash, and the Founders’ Reward has ended,” the Electric Coin Company announced on Twitter today.
After the upgrade, the resources will be distributed differently. While Zcash miners will still receive only 80% of the bloc’s rewards, 8% of the remaining 20% will go to the Core Subsidies Fund, designed to support third-party developers.
The community also voted to extend the development fund for the next four years – as it could have expired after halving. From now on, the Electric Coin Company and the Zcash Foundation will receive the remaining 7% and 5% of all the bloc’s rewards, respectively.
The next halving will further reduce the Zcash miners’ block reward to 1.5625 ZEC and will occur sometime in 2024.