Dragonfly's Qureshi calls for Zcash dev fund to end in 2028
Dragonfly partner says the Zcash dev fund should wind down in 2028
Haseeb Qureshi, managing partner at crypto venture capital firm Dragonfly, has proposed winding down the Zcash developer fund when it expires under current rules in 2028.
“I'm of the opinion that this should be the final Dev Fund,” Qureshi wrote in a Friday post on X. He argued the fund is already large enough to pay for the remaining work on Zcash, a privacy-focused cryptocurrency, and that it risks being “politicized” as its value moves toward $100 million.
Key numbers
- The fund held 63,962 Zcash (ZEC) tokens at press time, worth roughly $95 million, according to ZecStats.
- It collects 0.1875 ZEC per block, which equals 12% of the block subsidy under the NU6 upgrade.
- Its balance sits outside circulation until it is released through governance decisions.
How the fund works
The Zcash development fund is a protocol development fund that pays for work on the Zcash network. It is funded by the block subsidy, meaning new ZEC created each time a block of transactions is added to the blockchain. The fund's growing value follows a rally in the price of ZEC, which has pushed the wider crypto industry to debate what should happen to it.
Industry voices split on the fund's future
Paradigm founder Matt Huang argued in a Wednesday X post that the fund matters especially “in this age of AI cyber capabilities” and rapid quantum progress, and that Zcash should keep it.
Winklevoss Capital investment analyst Maxime Desalle went the other way, suggesting in a Thursday post that the community “completely get rid” of the fund, which he said would end the governance disputes around it. In an earlier post on Sept. 9, Desalle argued the fund could weaken Zcash's security while recreating the dependencies and bureaucracies seen in welfare states.
Zcash founder Zooko Wilcox said on Sept. 1 that the Zcash Community Grants Committee was among the main reasons Zcash “has survived and grown to where it is today.” On Sept. 14, Wilcox clarified that the committee accounts for 40% of the development fund.
Who should control the money?
Qureshi said control of the fund should not move toward “pure token holder voting,” though he backed a partial model in which token holders elect temporary councils.
Huang agreed, saying pure token-holder governance could add “unpredictability that could limit long-term trust as a monetary asset,” and proposed a hybrid model that combines other forms of governance.
What is confirmed
Confirmed details include the fund's holdings and value at press time, its 12% share of the block subsidy under NU6, its 2028 expiration under current rules, and the public positions of Qureshi, Huang, Desalle and Wilcox as stated in their X posts.
What is still unclear
The discussion is a public debate among industry figures, not a settled decision. No binding proposal or governance vote is reported in the source, and it is not yet decided whether the fund will end, continue, or change structure after 2028.
Why it matters
The fund is the money that keeps Zcash development going. Whether it ends, continues, or changes hands will shape how much money is available to build and maintain the network, and who gets to decide how it is spent.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.