Our 4th Zcoin community meeting was an interesting one with lots of good questions and suggestions including surrounding the development/community funding percentage along with a decision to close feedback at the end of April for the development reward/znode/miner percentages. We held the meeting slightly earlier compared to previous meetings to give a chance for our friends in the US to join.
1:57 Outline of Zcoin’s budget
We discussed the breakdown of Zcoin’s budget which covers the team’s salaries, consultants, development cost and operation expenses. We would like to thank our seed investors for using their block reward to help support our development during this period.
While operating a slight deficit, we have managed to retain all our development and research teams.
15:25 Alternative funding mechanisms
Alternative funding mechanism such as Zcoin Crowdfunding System(ZCS) and Opencollective were also discussed to create alternative sustainable revenue flows rather than just being reliant on the block reward. While a block reward does align the incentives of the core team with the project, it is also a point of centralization, subject to price fluctuations and creates some negative pressure due to the need for Zcoin to be sold to meet fiat commitments. OpenCollective which works like a Patreon of sorts, allows recurring donations to be set up without any need to sell Zcoin. Was agreed to set OpenCollective up. (Zcoin’s OpenCollective is already live here).
23:45 Discussion on Development Reward and other portions of block reward past halving in September
Current community consensus is to have it at anywhere between 10 to 20% of the block reward and it is to be noted that post halving to maintain the same levels of funding as today, 12 % is required. Reuben expressed his preference for 15%. Reuben outlined some areas where he would like greater expansion of the team if budget permits such as marketing, QA and UI designers and would preferably like to expand the budget to a $100k USD a month funding permitting. There was also discussion on the possibility of placing funds that in the event of Zcoin’s price rising and the budget receive is above $100k USD, that a separate fund be set aside to be used for the ZCS or other purposes.
There was discussion on a separate council to be appointed (not from the core team) that can manage these additional funds (if any) and to help decentralize decision making beyond just the core team. Rasikh also mooted about whether to have the block reward at 20% for the first 3 months and then drop it down to 15%.
There was also discussion as to how much miners should get vs the Znodes. Two options 55% miners 30% Znodes 15% Dev or 50% miners 35% Znodes 15% Dev.
46:52 Discussion on possibility of creation of a separate council. (any qualifications?)
Does a council member need to hold a Znode? Any technical understanding requirement? Take a deeper look into Komodo’s election methods perhaps though there’s some concern on validator voting due to the experienced learnt from DPoS chains.
Instead of formal requirements, could identify active members of our community who have contributed to the community and help people out are who are eligible to be Zcoin council members which the community would recognize these people. This is similar to how Monero handles it.
53:38 Zcoin Adoption Ideas
There is a lack of community adoption and reliant on the core team. Beyond just recruiting merchants there has to be an incentive for people to want to spend Zcoin at the merchants so we need to think on this. Encouraging community members to list their businesses on our Zcoin merchant page. Reuben brought up the BTCPayserver proposal again that seems more urgent but due to funding priorities couldn’t pursue it yet.
59:30 Questions about Roadmap
There were questions about when Receiver Address Privacy was going live and Reuben elaborated that to not delay the core14 and deterministic masternode release, we will be launching that first and then RAP ported over which shouldn’t be a lot of work but didn’t want to have too many things to watch during this hard fork. Some updates on deterministic masternodes that is rolling out on testnet already. Savil brought up whether there were some existing organizations that had expressed interest in building on the Elysium tokenization platform and Reuben said that he has to get an update from Poramin and that in Thailand there’s already going to be a digital Thai baht so that would be interesting. Savil also asked about whether chain locks can make exchanges reduce the number of confirmations required for a coin to be accepted into the exchange and Reuben confirmed that he has seen some exchanges lower this requirement for Dash. He also brought up that MTP’s proof sizes are such a bloat and that is preventing Zcoin from dropping the block time further.
There were some discussions on instant sync using ZK proofs such as Coda protocol and how it was important to look deeper into this for usability.
Discussion on centralized private no-KYC swap vs more decentralized options such as DEXes and atomic swaps.
1:24:40 Other matters
The last half of the community meeting discussed about Zcoin adoption ideas which Rasikh had a lot of suggestions such as businesses accepting Zcoin as their payment (Zcoinmerchants) and user incentive of using Zcoin. This is still at the brainstorming phase. You can join the Community Zcoin Adoption Working group over at Telegram
We also answered questions on the Technical Roadmap and on algorithm change.
There was a decision to close the community feedback period and make a final decision for the development block reward and percentage by the end of April.
Thank you everyone who participated!
Give your feedback on the discussions over on the Zcoin Forums!