Dragonfly Calls for End to Zcash Dev Fund Amid Rising Value Concerns

Crypto-focused venture capital firm Dragonfly's managing partner Haseeb Qureshi has called for an end to the Zcash dev fund after its expiration in 2028.

The fund, which holds 63,962 ZEC tokens worth around $95 million at press time, is currently set to expire under current rules. Qureshi argued that it's large enough to cover remaining work on Zcash and risks being 'politicized' as its value approaches $100 million.

The Zcash development fund accrues 0.1875 ZEC tokens per block, representing 12% of the block subsidy under the NU6 upgrade. Its balance sits outside circulation until governance disbursement. Industry watchers are debating who should control the development fund, with some arguing for pure token holder voting and others proposing a hybrid model.

The debate follows a broader industry discussion sparked by the ZEC token's rally and the increasing value of the dev fund. Others have suggested that the fund may hurt the security of Zcash while recreating dependencies and bureaucracies, or that it should be completely eliminated to solve governance disputes.