Winklevoss twins urge Zcash to dissolve community grants committee

What happened

Cameron and Tyler Winklevoss, the Gemini founders, have publicly urged Zcash to eliminate its community grants committee and let ZEC holders decide how development money is spent. The calls, reported by Crypto.news and Blockonomi, came in October 30 posts on X and landed amid a widening dispute over a treasury that Zcash cofounder Sean Bowe recently estimated at more than $125 million.

Cameron Winklevoss argued that Zcash does not need to design a new governance model. Stakeholder voting, he said, has been used in capital markets for centuries, and coinholder voting is its blockchain equivalent. He wrote that governance experimentation falls outside Zcash's mission, which he described as privacy, and called for Zcash Community Grants, known as ZCG, to be discontinued.

Tyler Winklevoss focused on accountability. He contrasted miners, who commit capital and computing power in a measurable competition for block rewards, with committee members who approve grants without comparable financial exposure if projects fail. He described the committee as a "slush fund with no accountability," alleged that its structure can encourage weak spending and conflicts of interest, and said Zcash could operate without it. He also argued that governance debates should not stay mainly on Zcash forums, calling X a more open venue.

Not everyone in the community agrees. Developer Vini Barbosa responded that community grants are a legitimate way to finance work that benefits the network and compared their role with the rewards miners receive for securing the chain. Tyler rejected that comparison, saying mining rewards come from measurable competition while grant approvals rest on committee decisions. No change to the existing funding arrangement has been approved.

Why it matters

The dispute is about more than one committee. It tests how Zcash funds development and who gets to decide. ZCG controls an 8% share of block rewards set aside for ecosystem development, while a separate coinholder program receives 12%. Bowe's proposal would move ZCG's share to a Network Sustainability Mechanism after existing obligations are honored, potentially shifting the balance toward coinholder-directed funding.

The argument also follows scrutiny of a $550,000 outreach proposal ZCG approved in August. The ZECsy project, previously reported by Crypto.news, planned adult-industry convention appearances, crypto conferences and workshops for people facing banking restrictions. About $461,500 was approved for the first nine monthly milestones. Supporters said it could reach people who need financial privacy; critics questioned lasting adoption. An October 27 report also cited Grayscale research crediting Zcash's funding model with privacy and security upgrades, with Grayscale's Zach Pandl naming quantum computing, transaction capacity and cybersecurity as areas needing more investment.

What the data shows

The figures at the center of the debate include the more than $125 million treasury estimate, the 20% block-reward allocation for ecosystem development, ZCG's 8% share and the coinholder program's 12% share. The September coinholder vote approved $8.39 million across 17 of 37 proposals, with about 2.18 million ZEC participating.

The ZECsy proposal carried a $550,000 price tag, with about $461,500 approved for the first nine monthly milestones. Bowe's plan would redirect ZCG's 8% share after existing commitments, while leaving the 12% coinholder allocation in place. The reports say no funding change has been approved.

Background

Zcash already splits 20% of block rewards toward ecosystem development. ZCG gets 8%, and the Coinholder-Directed Retroactive Grants Program gets the other 12%. The coinholder program lets ZEC holders vote on grants for completed work. In September, holders approved $8.39 million across 17 of 37 proposals. Blockonomi reported that about 2.18 million ZEC took part, equal to 10.4% of the 21 million maximum supply.

On October 27, Bowe proposed redirecting ZCG's 8% block-subsidy share to the Network Sustainability Mechanism. Existing grant commitments would be honored first, and the coinholder program would keep its 12%. The proposal would need a future network upgrade to take effect. The coinholder program's next round is scheduled to accept proposals from October 30 through November 13, with voting set for December 17 to December 29.

What to watch

The next signals to watch are whether Zcash governance bodies advance Bowe's proposal or respond to the Winklevoss calls, and how the coinholder proposal and voting windows proceed. The reports say no change to ZCG's funding has been approved, and Bowe's plan would require a future network upgrade. The dispute may also continue across Zcash forums and X, given Tyler Winklevoss's push for more open discussion.

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