#Terminology

The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in BCP 14 [2] when, and only when, they appear in all capitals.

For clarity this ZIP defines these terms:

• Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.

• Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.

• Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).

• Block distribution is defined as the block reward minus transaction fees. the protocol specification uses "block subsidy".

• Spirit is defined as what is the intended outcome of the ZIP. [1]

• Initial promise is non-neutral language referencing the block distribution rules as initially set out. [3]

#Abstract

The spirit of this ZIP is to is to ensure that the Founders’ Reward ends. It is not the intention of this ZIP to stop protocol-based donations.

It is a simple short ZIP.

Hopefully it will be compatible with a number of other ZIPs and can be worked into them.

#Out of Scope for this Proposal

• Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.

• Future funding.

• It does not cover other donations or revenue streams.

#Motivation

• The Founders’ Reward is set to expire in 2020.

• To honour the initial promise of giving 90% of total block distribution to miners. Therefore the protocol will give them 100% of the block distribution after the first halving.

#Requirements

• The Founders’ Reward MUST end at the first halving in October 2020.

• This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.

#Specification

• The existing Founders’ Reward consensus rules [4] [5] MUST be preserved.

• Specifically, FoundersReward(height) MUST equal 0 if Halving(height) >= 1. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in [4] and [5].)

• This specification is only meant to stop the Founders’ Reward, not protocol-based donations.

• Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.

#Implications to other users

• Block distribution payouts to Founders’ Reward addresses will cease at the first halving.

• Pools and other software need to take this into account.

#Technical implementation

This ZIP requires no changes to current consensus implementations.

#References