Despite likely Dev Fund extension, Electric Coin Co. may need to restructure its operations

Over the past 6 months, much of the discussion among Zcash community members have been focused on extending the network's Development Fund, which is due to expire in November 2020. At present, the Founders Reward baked into its protocol sets aside 20% of the rewards produced. A portion of these rewards is used to fund Electric Coin Company (ECC), the central company behind the network's development. It remains to be seen if this reward will be extended beyond its initial four-year life cycle: even if an extension proposal does pass, specific percentages remain unknown. Nevertheless, ECC has publicly stated that they are “All in on ZEC”. If the development fund is not extended or if the company’s runway dipped below one year, it will be forced to pivot and look for alternative revenue streams.

As community conversations continue, it seems increasingly likely that a Dev Fund will be extended: a recent poll indicated majority support among community constituents, although, curiously, no ZEC miners participated in the process. The three most favored proposals would set aside 20% of the rewards mined, with ECC receiving 6%, 7%, and 10%, respectively. The Zcash Foundation, another recipient of the Dev Fund rewards, has helped steer the decision process for a new fund and has also announced support for a proposal with slight modifications that would give 7% to ECC.