From 7448bba530b1aefe8db86bfe52038e13a8f87fb4 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Sat, 15 Feb 2020 03:28:45 +0000 Subject: [PATCH 01/15] Rename the "ZF-MG" slice to "MG", and the "ZF-GU" slice to "ZF". Clearer, and reflects common use in the forum and Helios poll. Based on https://github.com/zcash/zips/pull/319/commits/1f851eb1c3ef75d34a042e91b6fa878d6969a63a Co-authored-by: Eran Tromer Signed-off-by: Daira Hopwood --- zip-1014.rst | 20 ++++++++++---------- 1 file changed, 10 insertions(+), 10 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index f79341899..d07e69c0a 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -120,9 +120,9 @@ Starting at the first Zcash halving in 2020, until the second halving in 2024, the following three slices: * 35% for the Electric Coin Company (denoted **ECC slice**); -* 25% for the Zcash Foundation, for general use (denoted **ZF-GU slice**); +* 25% for the Zcash Foundation, for general use (denoted **ZF slice**); * 40% for additional "Major Grants" for large-scale long-term projects - (denoted **ZF-MG slice**). + (denoted **MG slice**). The slices are described in more detail below. The fund flow will be implemented at the consensus-rule layer, by sending the corresponding ZEC to the designated @@ -153,8 +153,8 @@ This obligation MUST be made irrevocable, e.g., within ECC's corporate governance structure (i.e., its Operating Agreement) or contractual obligations. -ZF-GU slice (Zcash Foundation, for general use) -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +ZF slice (Zcash Foundation's general use) +~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ This slice of the Dev Fund will flow to ZF, to be used at its discretion for any purpose within its mandate to support Zcash and financial privacy, @@ -163,8 +163,8 @@ and via events, gathering community sentiment, and external awarding grants for all of the above. -ZF-MG slice (Zcash Foundation, for major grants) -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +MG slice (Major Grants) +~~~~~~~~~~~~~~~~~~~~~~~ This slice of the Dev Fund is intended to fund independent teams entering the Zcash ecosystem, to perform major ongoing development (or other work) for the @@ -218,7 +218,7 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as operate the Community Panel and SHOULD work toward making it more representative and independent (more on that below). -ZF SHALL recognize the ZF-MG slice of the Dev Fund as a Restricted Fund +ZF SHALL recognize the MG slice of the Dev Fund as a Restricted Fund donation under the above constraints (suitably formalized), and keep separate accounting of its balance and usage under its `Transparency and Accountability`_ obligations defined below. @@ -297,7 +297,7 @@ conditions, and the prescribed use of funds, such that substantial violation, not promptly remedied, will permit the other party to issue a modified version of Zcash node software that removes the violating party's Dev Fund slice, and use the Zcash trademark for this modified version. The slice's funds will be -reassigned to ZF-MG (whose integrity is legally protected by the Restricted +reassigned to MG (whose integrity is legally protected by the Restricted Fund treatment). @@ -305,8 +305,8 @@ Future Community Governance --------------------------- Decentralized community governance is used in this proposal via the Community -Panel as input into the Major Grant Review Committee which governs the `ZF-MG -slice (Zcash Foundation, for major grants)`_. +Panel as input into the Major Grant Review Committee which governs the +`MG slice (Major Grants)`_. It is highly desirable to develop robust means of decentralized community voting and governance --- either by expanding the Community Panel From d3d52c75fe36cf9a1a62629de7d6a11cb461b5ad Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Sat, 15 Feb 2020 03:30:31 +0000 Subject: [PATCH 02/15] Resolve a wording ambiguity: Major Grant funding decisions are intended to be subject to veto if they violate any U.S. law, not just law relating to the ZF's reporting requirements. Signed-off-by: Daira Hopwood --- zip-1014.rst | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index d07e69c0a..882097133 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -203,8 +203,8 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as 6. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation - judges them to violate the ZF's reporting requirements under U.S. IRS - 501(c)(3) or U.S. law. + judges them to violate U.S. law or the ZF's reporting requirements under U.S. + IRS 501(c)(3). 7. Major Grant Review Committee members SHALL have a one-year term and MAY sit for reelection. The Major Grant Review Committee is subject to the same From f7229384d91c32e71fec963af949d49d65f20aed Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Sat, 15 Feb 2020 03:31:57 +0000 Subject: [PATCH 03/15] Clear up a stale reference to "both of these processes" (originally one of the processes referred to was the Community Panel's power to change the Funding Cap, which no longer exists). Signed-off-by: Daira Hopwood --- zip-1014.rst | 9 +++++---- 1 file changed, 5 insertions(+), 4 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 882097133..327a2d901 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -309,10 +309,11 @@ Panel as input into the Major Grant Review Committee which governs the `MG slice (Major Grants)`_. It is highly desirable to develop robust means of decentralized community -voting and governance --- either by expanding the Community Panel -or a successor mechanism --- and to integrate them into both of these -processes, by the end of 2021. ECC and ZF SHOULD place high priority on such -development and its deployment, in their activities and grant selection. +voting and governance --- either by expanding the Community Panel or a +successor mechanism --- and to integrate them into this and any other +pertinent governance processes, by the end of 2021. ECC and ZF SHOULD place +high priority on such development and its deployment, in their activities +and grant selection. ZF Board Composition From 8cfeb65925b763df019827cbe33fcf2cdb9c9356 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Sat, 15 Feb 2020 12:50:00 +0000 Subject: [PATCH 04/15] Obligations under 501(c)(3) are not only reporting requirements. This responds to one part of @tromer's point at https://forum.zcashcommunity.com/t/final-text-of-zip-1014/36002/3 Signed-off-by: Daira Hopwood --- zip-1014.rst | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 327a2d901..247ae4298 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -203,8 +203,8 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as 6. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation - judges them to violate U.S. law or the ZF's reporting requirements under U.S. - IRS 501(c)(3). + judges them to violate U.S. law or the ZF's reporting requirements and other + obligations under U.S. IRS 501(c)(3). 7. Major Grant Review Committee members SHALL have a one-year term and MAY sit for reelection. The Major Grant Review Committee is subject to the same From 5811fadeefe69ed95056df725405144b6fdd1270 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:36:42 +0000 Subject: [PATCH 05/15] ZIP 1014: terminology. Signed-off-by: Daira Hopwood --- zip-1014.rst | 23 +++++++++++++++++++---- 1 file changed, 19 insertions(+), 4 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 247ae4298..0de7e16ca 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -24,13 +24,26 @@ Terminology The key words "MUST", "MUST NOT", "SHALL", "SHALL NOT", "SHOULD", and "MAY" in this document are to be interpreted as described in RFC 2119. [#RFC2119]_ +The term "network upgrade" in this document is to be interpreted as +described in ZIP 200. [#zip-0200]_ + +The terms "block subsidy" and "halving" in this document are to be interpreted +as described in sections 3.9 and 7.7 of the Zcash Protocol Specification. +[#protocol]_ + +"Electric Coin Company", also called "ECC", refers to the Zerocoin Electric +Coin Company, LLC. + +"Zcash Foundation", also called "ZF", refers to the 501(c)(3) nonprofit +corporation of that name. + Abstract ======== This proposal describes a structure for the Zcash Development Fund, to be enacted in Network Upgrade 4 and last for 4 years. This Dev Fund would consist -of 20% of the block rewards, split into 3 slices: +of 20% of the block subsidies, split into 3 slices: * 35% for the Electric Coin Company; * 25% for Zcash Foundation (for internal work and grants); @@ -46,7 +59,7 @@ Motivation ========== Starting at Zcash's first halving in October 2020, by default 100% of the block -rewards will be allocated to miners, and no further funds will be automatically +subsidies will be allocated to miners, and no further funds will be automatically allocated to research, development, and outreach. Consequently, no substantial new funding may be available to existing teams dedicated to Zcash: the Electric Coin Company (ECC), the Zcash Foundation (ZF), and the many entities funded by @@ -116,7 +129,7 @@ Dev Fund allocation ------------------- Starting at the first Zcash halving in 2020, until the second halving in 2024, -20% of the block rewards SHALL be allocated to a "Dev Fund" that consists of +20% of the block subsidies SHALL be allocated to a "Dev Fund" that consists of the following three slices: * 35% for the Electric Coin Company (denoted **ECC slice**); @@ -236,7 +249,7 @@ are not accepted and disbursed by ZF, but rather directly assigned to the grantees. Thus, the following mechanism MAY be used in perpetuity for some or all grantees, if agreed upon by both ECC and ZF before NU4 activation: -Prior to each Network Upgrade, the Foundation SHALL publish a list of +Prior to each network upgrade, the Foundation SHALL publish a list of grantees' addresses and the total number of Dev Fund ZEC per block they should receive. ECC and ZF SHALL implement this list in any implementations of the Zcash consensus rules they maintain. This decision will then be, @@ -360,7 +373,9 @@ References ========== .. [#RFC2119] `Key words for use in RFCs to Indicate Requirement Levels `_ +.. [#protocol] `Zcash Protocol Specification [Overwinter+Sapling+Blossom] `_ .. [#osd] `The Open Source Definition `_ +.. [#zip-0200] `ZIP 200: Network Upgrade Mechanism `_ .. [#zip-1003] `20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate `_ .. [#zip-1010] `Compromise Dev Fund Proposal With Diverse Funding Streams `_ .. [#zip-1011] `Decentralize the Dev Fee `_ From e2de904356bb6ebfa9bf8a19afc0f9658fd93bf4 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:37:08 +0000 Subject: [PATCH 06/15] ZIP 1014: add ZIP numbers to references. Signed-off-by: Daira Hopwood --- zip-1014.rst | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 0de7e16ca..df9d5c2dd 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -376,8 +376,8 @@ References .. [#protocol] `Zcash Protocol Specification [Overwinter+Sapling+Blossom] `_ .. [#osd] `The Open Source Definition `_ .. [#zip-0200] `ZIP 200: Network Upgrade Mechanism `_ -.. [#zip-1003] `20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate `_ -.. [#zip-1010] `Compromise Dev Fund Proposal With Diverse Funding Streams `_ -.. [#zip-1011] `Decentralize the Dev Fee `_ -.. [#zip-1012] `Dev Fund to ECC + ZF + Major Grants `_ +.. [#zip-1003] `ZIP 1003: 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate `_ +.. [#zip-1010] `ZIP 1010: Compromise Dev Fund Proposal With Diverse Funding Streams `_ +.. [#zip-1011] `ZIP 1011: Decentralize the Dev Fee `_ +.. [#zip-1012] `ZIP 1012: Dev Fund to ECC + ZF + Major Grants `_ .. [#zf-community] `ZF Community Advisory Panel `_ From 36efce62acb5c12adf215849b622315e69efe574 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:37:46 +0000 Subject: [PATCH 07/15] ZIP 1014: cosmetics. Signed-off-by: Daira Hopwood --- zip-1014.rst | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index df9d5c2dd..a43292e22 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -212,7 +212,7 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as 5. Major Grants awards are subject to approval by a five-seat Major Grant Review Committee. The Major Grant Review Committee SHALL be selected by the - ZF's (Community Panel) [#zf-community]_ or successor process. + ZF's Community Panel [#zf-community]_ or successor process. 6. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation @@ -322,8 +322,8 @@ Panel as input into the Major Grant Review Committee which governs the `MG slice (Major Grants)`_. It is highly desirable to develop robust means of decentralized community -voting and governance --- either by expanding the Community Panel or a -successor mechanism --- and to integrate them into this and any other +voting and governance –either by expanding the Community Panel or a +successor mechanism– and to integrate them into this and any other pertinent governance processes, by the end of 2021. ECC and ZF SHOULD place high priority on such development and its deployment, in their activities and grant selection. From 573ea33397819905622e695b7d9dbe14d334df66 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:39:05 +0000 Subject: [PATCH 08/15] ZIP 1014: minor wording fixes. Signed-off-by: Daira Hopwood --- zip-1014.rst | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index a43292e22..4babfea2a 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -171,8 +171,8 @@ ZF slice (Zcash Foundation's general use) This slice of the Dev Fund will flow to ZF, to be used at its discretion for any purpose within its mandate to support Zcash and financial privacy, -including: development, education, support community communication online -and via events, gathering community sentiment, and external awarding grants +including: development, education, supporting community communication online +and via events, gathering community sentiment, and awarding external grants for all of the above. @@ -263,7 +263,7 @@ Obligations ~~~~~~~~~~~ ECC, ZF, and Major Grant recipients (during and leading to their award period) -SHALL all accept the following obligations: +SHALL all accept the obligations in this section. Ongoing public reporting requirements: From dbd3001774dee0920bd3b799716e06d07a1abc9a Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:40:24 +0000 Subject: [PATCH 09/15] ZIP 1014: add "for example" to sentence about ecosystem growth. Signed-off-by: Daira Hopwood --- zip-1014.rst | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 4babfea2a..1f6493278 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -201,10 +201,10 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as substantial (current or prospective) continual existence, and set them up for long-term success, subject to the usual grant award considerations (impact, ability, risks, team, cost-effectiveness, etc.). Priority SHOULD be - given to Major Grants that support ecosystem growth through mentorship, - coaching, technical resources, creating entrepreneurial opportunities, etc. - If one proposal substantially duplicates another's plans, priority SHOULD be - given to the originator of the plans. + given to Major Grants that support ecosystem growth, for example through + mentorship, coaching, technical resources, creating entrepreneurial + opportunities, etc. If one proposal substantially duplicates another's + plans, priority SHOULD be given to the originator of the plans. 4. Major Grants SHOULD be restricted to furthering the Zcash cryptocurrency and its ecosystem (which is more specific than furthering financial privacy in From 51224cbca1fe85f06f21f24dfa7607b7b3893c83 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:40:42 +0000 Subject: [PATCH 10/15] ZIP 1014: change title to disambiguate from ZIP 1012. Signed-off-by: Daira Hopwood --- zip-1014.rst | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/zip-1014.rst b/zip-1014.rst index 1f6493278..f8fa23226 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -1,7 +1,7 @@ :: ZIP: 1014 - Title: Dev Fund to ECC + ZF + Major Grants + Title: Establishing a Dev Fund for ECC, ZF, and Major Grants Owners: Josh Cincinnati Zooko Wilcox Original-Author: Eran Tromer From c3dad3f1edb5cbedb10faaddee0a645577d401b1 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Tue, 25 Feb 2020 12:39:17 +0000 Subject: [PATCH 11/15] ZIP 1014: wording clarification. 20% of the block subsidy is allocated from *each* block. (The previous wording could have allowed an interpretation of any allocation that sums to 20% over four years, which was not the intent.) Signed-off-by: Daira Hopwood --- zip-1014.rst | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index f8fa23226..b63792eb6 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -129,8 +129,8 @@ Dev Fund allocation ------------------- Starting at the first Zcash halving in 2020, until the second halving in 2024, -20% of the block subsidies SHALL be allocated to a "Dev Fund" that consists of -the following three slices: +20% of the block subsidy of each block SHALL be allocated to a "Dev Fund" that +consists of the following three slices: * 35% for the Electric Coin Company (denoted **ECC slice**); * 25% for the Zcash Foundation, for general use (denoted **ZF slice**); From de48022622d2a49c5be8b66d8c984ce1799bd858 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Wed, 26 Feb 2020 19:49:02 +0000 Subject: [PATCH 12/15] ZIP 1014: include the Zcash Trademark Donation and License Agreement as part of the definition of "network upgrade". Signed-off-by: Daira Hopwood --- zip-1014.rst | 4 +++- 1 file changed, 3 insertions(+), 1 deletion(-) diff --git a/zip-1014.rst b/zip-1014.rst index b63792eb6..67347128d 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -25,7 +25,8 @@ The key words "MUST", "MUST NOT", "SHALL", "SHALL NOT", "SHOULD", and "MAY" in this document are to be interpreted as described in RFC 2119. [#RFC2119]_ The term "network upgrade" in this document is to be interpreted as -described in ZIP 200. [#zip-0200]_ +described in ZIP 200 [#zip-0200]_ and the Zcash Trademark Donation and License +Agreement ([#trademark]_ or successor agreement). The terms "block subsidy" and "halving" in this document are to be interpreted as described in sections 3.9 and 7.7 of the Zcash Protocol Specification. @@ -374,6 +375,7 @@ References .. [#RFC2119] `Key words for use in RFCs to Indicate Requirement Levels `_ .. [#protocol] `Zcash Protocol Specification [Overwinter+Sapling+Blossom] `_ +.. [#trademark] `Zcash Trademark Donation and License Agreement `_ .. [#osd] `The Open Source Definition `_ .. [#zip-0200] `ZIP 200: Network Upgrade Mechanism `_ .. [#zip-1003] `ZIP 1003: 20% Split Evenly Between the ECC and the Zcash Foundation, and a Voting System Mandate `_ From 12b3f0e25f9a34b89bc2bb844799dd3dae733f1d Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Wed, 26 Feb 2020 19:49:45 +0000 Subject: [PATCH 13/15] ZIP 1014: add "(current or future)" to other obligations under U.S. IRS 501(c)(3). Signed-off-by: Daira Hopwood --- zip-1014.rst | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/zip-1014.rst b/zip-1014.rst index 67347128d..81300497b 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -218,7 +218,7 @@ The funds SHALL be received and administered by ZF. ZF MUST disburse them as 6. The Major Grant Review Committee's funding decisions will be final, requiring no approval from the ZF Board, but are subject to veto if the Foundation judges them to violate U.S. law or the ZF's reporting requirements and other - obligations under U.S. IRS 501(c)(3). + (current or future) obligations under U.S. IRS 501(c)(3). 7. Major Grant Review Committee members SHALL have a one-year term and MAY sit for reelection. The Major Grant Review Committee is subject to the same From 4392f805423d59949975ae0851b119a5b3a0c94f Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Wed, 26 Feb 2020 19:52:18 +0000 Subject: [PATCH 14/15] ZIP 1014: delete "and any other pertinent governance processes" from the description of process for which it is desirable to develop "robust means of decentralized community voting and governance". Signed-off-by: Daira Hopwood --- zip-1014.rst | 7 +++---- 1 file changed, 3 insertions(+), 4 deletions(-) diff --git a/zip-1014.rst b/zip-1014.rst index 81300497b..2a5340b77 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -324,10 +324,9 @@ Panel as input into the Major Grant Review Committee which governs the It is highly desirable to develop robust means of decentralized community voting and governance –either by expanding the Community Panel or a -successor mechanism– and to integrate them into this and any other -pertinent governance processes, by the end of 2021. ECC and ZF SHOULD place -high priority on such development and its deployment, in their activities -and grant selection. +successor mechanism– and to integrate them into this process by the end of +2021. ECC and ZF SHOULD place high priority on such development and its +deployment, in their activities and grant selection. ZF Board Composition From c040121fc1f55678590b7ab137c2460dd8401dd8 Mon Sep 17 00:00:00 2001 From: Daira Hopwood Date: Thu, 20 Feb 2020 00:41:03 +0000 Subject: [PATCH 15/15] ZIP 1014 Status to Proposed. Signed-off-by: Daira Hopwood --- zip-1014.rst | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/zip-1014.rst b/zip-1014.rst index 2a5340b77..0997f5b98 100644 --- a/zip-1014.rst +++ b/zip-1014.rst @@ -11,7 +11,7 @@ @dontbeevil Daira Hopwood George Tankersley - Status: Draft + Status: Proposed Category: Consensus / Process Created: 2019-11-10 License: MIT