Whereas the outdated DFM ensured ongoing improvement throughout the Zcash ecosystem, it additionally launched poor incentives, making it troublesome to carry Dev Fund recipients accountable to the group that was funding them. In July of 2024 the group voted to maneuver to grants-based funding, a non-direct funding mannequin (NDFM) that requires Dev Fund recipients, no matter their measurement and standing, to submit concrete proposals, compete for funding, report on their progress, and ship on their guarantees with a purpose to proceed to obtain group assist. The transition to NDFM started with the addition of the Lockbox underneath NU6, from which all funds will finally be launched by group consensus. The following step is to determine on and construct out the fund disbursement mechanism for the Lockbox.
Hybrid Deferred Dev Fund
The group additionally voted to increase direct funding for ZCG by one 12 months. Underneath the short-term Hybrid Deferred funding mannequin 12% of the block subsidy will go to the Lockbox and eight% can be distributed to the Monetary Privateness Basis (FPF), for the categorical use by ZCG for group grants. This interim resolution ensures that unbiased groups throughout the Zcash ecosystem proceed to obtain obligatory funding whereas the Lockbox’s disbursement mechanism is finalized.
