Terminology

The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in BCP 14 2 when, and only when, they appear in all capitals.

For clarity this ZIP defines these terms:

• Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.
• Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.
• Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).
• Block distribution is defined as the block reward minus transaction fees. the protocol specification uses "block subsidy".
• Spirit is defined as what is the intended outcome of the ZIP. 1
• Initial promise is non-neutral language referencing the block distribution rules as initially set out. 3

Abstract

The spirit of this ZIP is to is to ensure that the Founders’ Reward ends. It is not the intention of this ZIP to stop protocol-based donations.

It is a simple short ZIP.

Hopefully it will be compatible with a number of other ZIPs and can be worked into them.

Out of Scope for this Proposal

• Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.
• Future funding.
• It does not cover other donations or revenue streams.

Motivation

• The Founders’ Reward is set to expire in 2020.
• To honour the initial promise of giving 90% of total block distribution to miners. Therefore the protocol will give them 100% of the block distribution after the first halving.

Requirements

• The Founders’ Reward MUST end at the first halving in October 2020.
• This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.

Specification

• The existing Founders’ Reward consensus rules 4 5 MUST be preserved.
• Specifically, FoundersReward(height) MUST equal 0 if Halving(height) >= 1. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in 4 and 5.)
• This specification is only meant to stop the Founders’ Reward, not protocol-based donations.
• Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.

Implications to other users

• Block distribution payouts to Founders’ Reward addresses will cease at the first halving.
• Pools and other software need to take this into account.

Technical implementation

This ZIP requires no changes to current consensus implementations.

References