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ZIP: 1001
Title: Keep the Block Distribution as Initially Defined — 90% to Miners
Owner: mistfpga (zcash forums) <steve@mistfpga.net>
Status: Obsolete
Category: Consensus
Created: 2019-08-01
License: CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0/>
Discussions-To: <https://forum.zcashcommunity.com/t/zip-proposal-keep-the-block-distribution-as-initaly-defined-90-to-miners/33843>

Terminology

The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in RFC 2119.1

For clarity this ZIP defines these terms:

  • Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.
  • Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.
  • Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).
  • Block distribution is defined as the block reward minus transaction fees. the protocol specification uses "block subsidy".
  • Spirit is defined as what is the intended outcome of the ZIP.2
  • Initial promise is non-neutral language referencing the block distribution rules as initially set out.3

Abstract

The spirit of this ZIP is to is to ensure that the Founders’ Reward ends. It is not the intention of this ZIP to stop protocol-based donations.

It is a simple short ZIP.

Hopefully it will be compatible with a number of other ZIPs and can be worked into them.

Out of Scope for this Proposal

  • Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.
  • Future funding.
  • It does not cover other donations or revenue streams.

Motivation

  • The Founders’ Reward is set to expire in 2020.
  • To honour the initial promise of giving 90% of total block distribution to miners. Therefore the protocol will give them 100% of the block distribution after the first halving.

Requirements

  • The Founders’ Reward MUST end at the first halving in October 2020.
  • This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.

Specification

  • The existing Founders’ Reward consensus rules4 5 MUST be preserved.
  • Specifically, FoundersReward(height) MUST equal 0 if Halving(height) >= 1. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in6 and7.)
  • This specification is only meant to stop the Founders’ Reward, not protocol-based donations.
  • Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.

Implications to other users

  • Block distribution payouts to Founders’ Reward addresses will cease at the first halving.
  • Pools and other software need to take this into account.

Technical implementation

This ZIP requires no changes to current consensus implementations.

References

  1. Key words for use in RFCs to Indicate Requirement Levels↩

  2. If there is contradiction between Spirit and any other part of the proposal that needs to be addressed, in the event it is not addressed Spirit is assumed to overrule all.↩

  3. Zcash blog: Funding, Incentives, and Governance. February 1, 2016↩

  4. Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward↩

  5. Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward↩

  6. Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward↩

  7. Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward↩