Zcash Plunges 3% Following Zooko Wilcox’s Letter Addressing New Zcash Dev Fund

Privacy-oriented cryptocurrency Zcash (ZEC) has seen a slight decrease in its price of about 3%. Interestingly enough, this comes after the publishing of an open letter written by Zookoo Wilcox, CEO of Electric Coin Company (ECC). The latter is the firm behind the cryptocurrency. 

Discussing the Possibility of a New Zcash Dev Fund

Zooko Wilcox, the CEO of Electric Coin Company, the firm behind Zcash, has written an open letter discussing the possibility of establishing a new Zcash dev fund. 

The letter also addressed important challenges facing the Zcash community, including the possible ways to go after the October 2020 halvening which will see the end of the Zcash Founders Reward. 

Back in 2016, the CEO as well as the CTO, Nathan Wilcox, bought back a certain share of the founders’ rewards in order to fund ongoing operations. This was what they referred to as “The Dev Fund.”

Now, however, Wilcox thinks that it’s time for a decision regarding the dev fund. 

The letter reads:

Now is the time for that decision. As Placeholder Capital expertly summarized, the options include sending 100% of new issuance to the miners, creating a new Dev Fund using a portion of new issuance, or other alternatives.

He also states that he shouldn’t be the one to make the decision for the community. Moreover, he thinks that the community is likely to undergo a difficult and messy decision-making process, but that this is also healthy and expected:

The complexity and noisiness of the debate in the Zcash community right now is a good sign.

Back in 2018, CryptoPotato interviewed Wilcox, and he stated that Zcash was the project he wished to work on day and night for the rest of his life. 

Zcash Takes a Slight Downturn Following the Letter

After the letter was published, the cryptocurrency went on to lose around 3% of its value in the following hours. 

ZEC is currently trading at around $67.04 and it possesses a market cap of $163 billion. In the past month, the cryptocurrency is down about 34 percent. ZEC is also declining against Bitcoin, as it lost around 28 percent of its value trading against BTC in the past 30 days.