DragonsFly: ZEC Development Fund Sufficient Until 2028

Digital asset venture capital firm DragonsFly has argued that the Zcash (ZEC) development fund should be terminated after 2028. The debate over the fund's operation has intensified amid recent ZEC price increases, which have pushed the fund's value close to $100 million.

According to CoinTelegraph on October 18, DragonsFly Managing Partner Hisham Kureshi stated on X (formerly Twitter) that 'the current development fund should be the last one.' The existing ZEC development fund is scheduled to expire in 2028.

The ZEC development fund is a mechanism that reserves a portion of block rewards for protocol development and other initiatives. Kureshi noted that 'the current fund alone is sufficient for future development needs,' adding that the fund's value nearing $100 million poses risks of politicization in its management. Currently, the fund holds approximately 63,962 ZEC tokens worth about $95 million.

However, some argue the fund should be maintained. Paradigm co-founder Matt Huang stated that 'in an era where AI-powered cyber attack capabilities and quantum computing technology are rapidly advancing, the role of the development fund remains critical.'