In the Zcash blockchain, on block 1,046,400, the block reward was reduced from 6.25 ZEC to 3.125 ZEC. Also launched is the Canopy update, which changed the distribution of block mining rewards.
The Zcash network appeared on October 28, 2016 as a fork of the Bitcoin blockchain. Zcash aims to provide increased user privacy through zk-SNARK’s zero-knowledge proof technology, developed by Electric Coin Company (ECC).
Along with the halving of the reward to miners, which took place four years after the appearance of Zcash, a major update to Canopy was launched. It provides for a new model of distribution of remuneration for the extraction of blocks. 80% of the reward will still be received by the miners. 8% will go to the grant fund for independent developers, 7% – Electric Coin Company, and 5% will be received by the Zcash Foundation.
Previously, the remaining 20% of the remuneration was distributed between ECC, Zcash Foundation, as well as between the founders and investors who participated in the creation of Zcash. The founders of the project received the “lion’s share” of remuneration – 14.2%, which caused a lot of controversy. Therefore, the change affected the founders and employees of ECC, because they will no longer receive the award. At the same time, the share intended for the Zcash Foundation is slightly increased. According to the management of Zcash, the involvement of external developers is necessary to ensure integrity, a greater level of decentralization and further development of the protocol.
The co-founder and head of the Hong Kong company Kenetic Capital, Jehan Chu, called Zcash “confidential bitcoin”. Chu believes that the halving of Zcash, which took place for the first time in the history of this network, was not only a landmark event. This will allow Zcash to take more space in the market, “pushing” other privacy contenders, such as Monero. The limited issue of Zcash of 21 million coins fuels investors ‘ interest in this cryptocurrency, while central banks in different countries are forced to print new money to support the economy. Messari analyst Ryan Watkins also believes that Zcash and BTC are interesting because their release schedule is clearly defined and predictable.
Recall that in July, the Heartwood hard fork was activated in the Zcash blockchain, which ensures the confidentiality of mining, and in September, the Zcash developers presented the code of a new version of the zero-knowledge proof of Halo 2.