Zcash Community Grants (ZCG) has withdrawn its proposal to redirect approximately 98,000 ZEC toward future mining rewards after criticism from the Zcash community. The plan, introduced on October 29, would have moved 36,200 ZEC from ZCG's existing treasury into the Network Sustainability Mechanism and reduced future funding allocations. At ZEC's price near $1,310, the proposed 98,000 ZEC redirection would have been worth roughly $128.7 million.
In a November 3 forum statement, the committee said: 'We've decided not to take this proposal forward.' The 98,000 ZEC figure includes future funding allocations rather than a single current balance. ZCG continues receiving 8% of newly issued ZEC, equivalent to approximately 144 ZEC daily, until governance changes are approved and implemented.
The withdrawal leaves several competing proposals under discussion. Zcash co-founders Sean Bowe and Zooko Wilcox support a different plan developed by Tachyon Group and Shielded Labs. That draft Zcash Improvement Proposal would require ZCG to contribute 50,000 ZEC to the NSM within 30 days of community acceptance, worth about $65 million under a $1,300 ZEC assumption. It would also end ZCG's future 8% block subsidy allocation and redirect that funding into a new development and legal-defense lockbox.
The funding dispute has drawn criticism from Gemini founders Cameron and Tyler Winklevoss, who questioned ZCG's spending decisions and accountability. A separate proposal from developer Daira-Emma Hopwood would preserve ZCG's 8% allocation while concentrating grants more closely on encouraging ZEC adoption. Zcash already operates a separate coinholder-controlled funding program receiving 12% of block rewards. Its next proposal window runs through November 13, with coinholder voting scheduled for December 17–29.
Meanwhile, a separate analysis from Anthropic's Claude AI has outlined a bullish scenario for Zcash, predicting ZEC could trade at $5,000 per coin by January 1, 2027. That hypothetical case imagines a major global payments company integrating Zcash's shielded transaction technology and making a meaningful investment in ZEC. Technical analysis from October 29 showed ZEC priced around $1,272, with resistance at $1,356 and support at $1,266. A breakout above resistance could open a move toward $1,500, though reaching $3,000 or more would require a significant fundamental catalyst and exceptionally favorable market conditions.
Potential catalysts cited in the AI scenario include increased demand for financial privacy amid AI-driven surveillance, geopolitical instability, central bank interest rate cuts, a broader Bitcoin rally, and institutional investment. The outlook also carries risks from regulatory crackdowns on privacy coins and previous security concerns. At the time of reporting, ZEC traded near $1,310, up more than 12% over 24 hours.
