Zcash Dev Fund Suggestion
When investing in a project, you invest in a team. For an outside individual to play Monday morning quarterback and say how things should be done is nonsense. I have faith in Zooko and the Electric Coin Company and that’s why I’m personally invested. So rather then a proposal, I will make a few suggestions.
- With an industry that’s value is based entirely on Network Effects, token price signals the health of a project.
Bitcoin grew because price bubbles attracted speculators and opportunists. Having bleeding edge/novel tech gives the sufficient foundation for a company to last, BUT price movement creates the necessary Network Effect for the project to blossom in the first place. I like that the team is focused on development but to say price doesn’t matter is nonsense.
2. There’s no conventional sources of revenue coming in to pay employee expenses. It is only this Zcash Dev Fund, a percentage of mining fees, to support the future operations of Zcash.
In the case of the Zcash Dev Fund, I would like to see the team really stretch every dollar as far as possible. I read a very well written and in-depth analysis from reporter, John Dantoni of the Block. Zcash had spent $250 million dollars over the last 3 years. As the founder of numerous startups I find that to be extraordinarily high number. To better visualize, that amount of money could afford 830 full time employees to work 3 years at $100,000 apiece.
When money is printed so easily it could often times be very easy to spend. I would like to see a far tighter budget control. Although I’m not working there, I find it really hard to believe that the money coming in was treated as though it was earned the hard route(you know what I mean). So for this, I propose Zcash to give a rough yearly breakdown of what they need to keep each staff cryptographer, biz dev employee, executive, janitor, etc. on staff with leeway for Zooko’s discretion. I’m not saying to openly tell us the exact salaries of every employee but we should know that there plans to be 100 people on staff and the salaries should average out to a competitive and fair market average.
The community should then authorize a say $10m yearly budget. Once that is given then we should allocate a budget in Zcash tokens at preset prices (e.g. $100 Zcash average for 2020, $200 for 2021. $300 for 2023). This way we incentivize the foundation to work hard to maintain a certain price and growth. If Zcash price was to say go up 2x more then expected then they can use those additional monies as they see fit cause they exceeded expectations. This kind of focus will create a price floor for the asset.
I have been around from the beginning and excited for the future of the project. If you have any thoughts or comments would love to hear below.
- A.P. (CloudedLogic)