The novel Zcash Trademark and License Settlement was the primary of its variety. Electrical Coin Co. (ECC) and Zcash Basis (ZF) created it, amongst different causes, to make sure that any Zcash community improve represented “the Clear Consensus of the Zcash neighborhood,” which might be decided by “proof agreed to by each events.” The language wasn’t particular about what this “proof” can be.
Whereas well-intentioned, Zcash has outgrown the necessity for this sort of settlement, and Zcash protocol governance ought to prolong past the attain of the 2 events. We moreover contend that as tasks like Zcash face elevated regulatory scrutiny, it’s essential to take motion now. It’s time to additional decentralize Zcash.
For these causes and others, ECC intends to terminate the trademark settlement, pending a profitable negotiation with ZF to make sure a clean transition. The settlement’s authors envisioned that this time would doubtless come and included varied mechanisms for dissolution. We’re trying ahead to a productive dialogue that advantages the whole ecosystem.
Whereas ECC will go away the settlement, we is not going to go away the Zcash neighborhood. We’re dedicated to persevering with our work to supply a world-class UX for Zcash, and we keep a robust curiosity within the continued well-being of the Zcash neighborhood and the broader ecosystem.
Background
When ECC donated the Zcash trademark to ZF in 2019, the settlement created a 2-of-2 consensus mannequin requiring each events’ settlement on utilization.
ECC initially meant to donate the trademark to the ZF with out restriction. Nonetheless, after some rivalry, ECC proposed the unprecedented settlement to make sure ZF didn’t have unilateral decision-making authority on using the mark. It was a donation with strings connected. Since then, the neighborhood has grown and matured, with many extra third events lively in analysis, engineering, neighborhood improvement, and adoption efforts. We don’t want it anymore.
Why we want to terminate the trademark settlement
The Zcash trademark settlement successfully consolidates governance energy in two sovereign organizations. A darker view is that Zcash’s governance rests within the arms of two folks and their respective boards of administrators. We imagine each organizations’ leaders are good actors right this moment, however we should always not assume this may at all times be true.
Even the notion of centralized energy places Zcash in danger with regulators. As many know, the whole crypto ecosystem is below intense scrutiny from authorities and regulation enforcement businesses within the US and overseas. Authorized battles are ubiquitous, tasks have been shut down for doubtful contraventions, and builders have been arrested and jailed. We felt the very actual impacts at ECC when the SEC subpoenaed us (ZF, too) final 12 months.
The trademark settlement binds ECC and ZF to assist and perform the voice of the neighborhood, stating, “Every social gathering covenants and agrees that it’s going to not make or withhold any approval, consents, or different determination below this Settlement if such approval, consent, or different determination is opposite to the Clear Consensus of the Zcash neighborhood.” Nonetheless, there is no such thing as a normal strategy to accumulate or interpret neighborhood consensus, and no group or committee represents the geographic and perspective range of Zcashers worldwide. The “Clear Consensus” clause was conceived with good intent however doesn’t operate as a respectable examine on energy. It’s flawed, and new governance is overdue.
How does strolling away make Zcash higher?
If Zcash is to be a shared public good, it should frequently add new individuals who characterize varied views on what Zcash is and will grow to be. Larger participation fuels vibrancy and resilience, and higher participation fuels even higher participation.
A brand new governance mannequin that features many different groups and stakeholders in disparate elements of the world will assist Zcash develop and evolve to serve very actual wants. It should unearth contemporary views, create a greater protocol, and provides rise to a brand new vitality.
We don’t know what this new mannequin appears like but, and it’s not ECC’s job to say, however we’re sure the Zcash neighborhood is inventive and motivated. There are already a number of compelling concepts and items of concepts floating round on the discussion board and different social platforms.
Whereas empowering extra voices might seem to be it might complicate decision-making on the floor, we imagine it raises the bar for social consensus as an open-source venture and thru Zcash’s ZIP course of.
Implications and dangers
If ECC unilaterally terminates the settlement with none concessions by ZF, it’s going to give ZF sole possession of the Zcash trademark and the facility to license it. As such, we intend to collaborate with ZF and contribute concepts on future trademark administration, together with enforcement and governance of the blockchain bearing the Zcash identify, as acceptable.
We’ll ask ZF for 3 issues:
They may decide to utilizing the trademark solely to guard towards its misuse by scammers or clear abusers of the mark. Within the curiosity of clear decentralization, they won’t use it to try to control the route of the protocol.
They may contemplate relinquishing the trademark to free the neighborhood of restrictions. This may also permit ZF to reallocate assist and enforcement funding to different optimistic enhancements for Zcash. When ECC owned and managed the trademark, we spent vital effort and cash making an attempt to guard it, and a lot of the fraud and non-compliance was happening in international locations like China, the place the trademark wasn’t protected anyway. It was whack-a-mole. Different decentralized protocols, resembling Bitcoin, haven’t any group that protects the mark. It’s protected by way of social consensus.
If ZF retains possession of the mark, termination of the trademark settlement will revoke all ECC trademark rights. We’ll request an ongoing restricted license to proceed offering neighborhood providers, resembling sustaining the z.money web site and managing the Zcash X account, until or till one other proprietor or answer is discovered.
We look ahead to listening to from the neighborhood about any extra dangers or considerations and dealing with ZF to make sure Zcash continues to evolve its governance and capabilities in a means that’s extremely inclusive, protecting, and nourishing for the expansion of the protocol and ecosystem.
