Privacy-oriented cryptocurrency firm Zcoin, published its new Zcoin block rewards administration structure that will come to force after the project’s halving event later in September, after over 12 months of community deliberations. As per the new allocations, 15 percent of all block rewards will be redirected to a newly introduced development fund.
All the funds will be redirected towards Zcoin’s blockchain infrastructure development involving activities such as research into new security and privacy setups and the development of its crypto wallet.
New Zcoin block rewards structure
Following the block rewards event in September, 12.5 XCZ tokens will be created per block. Half of the XCZ tokens will be distributed among the miners . In addition, 35 percent of 4.275 XCZ will be directed to Znodes. The remaining 15 percent or 1.875 XCZ tokens will then be assigned to the Zcoin’s Development Fund.
Two years after the September halving event, the Zcoin community is set to evaluate the funds allocated for development, in order to note the needs and funds required. Deliberations among the Zcoin community will commence 18 months after the block rewards halving.
As per the current structure, only 6 percent of the 25 XCZ tokens mined per block are assigned for the development of the infrastructure. 8 percent of the amount goes to the founders’ rewards and seeds, 30 percent is directed to nodes while 56 percent is distributed among the miners.
Zcoin community proposes a reserve fund kitty
The upcoming Zcoin block rewards administration revamp will also see the introduction of the Zcoin Reserve Fund where all the XCZ tokens assigned for the Development Fund of the network will be deposited, when the balance surpasses 100,000 BCZ tokens. This limit is set to rise by 4% annually to deal with inflation.
Moreover, the funds amassed in the Reserve Fund can only be utilized following the communities agreement. The funds will be totally used to settle bug bounties, cover development funds when short, should the price of BCZ plunge below $3.50, on top of other deliberations in the community.
