Huang Warns ZEC Governance Crisis Could Limit Token Trust

Paradigm founder Matt Huang has weighed in on the ongoing governance crisis at Zcash (ZEC), warning that the current coinvoting mechanism could limit the long-term trust and valuation of the token.

The Dev Fund, which captures 20% of all block rewards to support development, is also under scrutiny. Some believe it's inflationary and a tax on holders who should be able to seek private funding instead.

However, Huang supports keeping the fund but thinks that coinvoting governance, where decisions are made by tokenholders, introduces unpredictability that could hurt ZEC's value. He suggests combining this method with other forms of governance for better outcomes.