Dragonfly’s Qureshi Urges End to Zcash Dev Fund After 2028

Zcash is a privacy-focused cryptocurrency whose protocol directs part of its block subsidy to development and community funding. Under the NU6 funding model, the development fund, or “lockbox,” accrues 0.1875 ZEC per block, equal to 12% of the subsidy, and remains outside circulating supply until governance approves disbursements. The arrangement is intended to sustain protocol work, but its swelling value has sharpened questions over accountability, decentralization and who should control a treasury tied to a monetary asset.

On Sept. 18, Dragonfly managing partner Haseeb Qureshi called for the fund to be wound down when the current rules expire around November 2028, saying it should be sufficient to finish remaining work and could become politicized as it nears $100 million. ZecStats showed the fund held 63,962 ZEC worth about $95 million. Paradigm founder Matt Huang argued on Sept. 16 that continued funding remained important as AI-enabled cyber capabilities and quantum computing advance, while both backed governance models that avoid handing full control to token-holder voting.