Zcash Jumps 5%, Outpaces Bitcoin, ETH as 10-Year Anniversary Draws Close

Zcash (CRYPTO: ZEC) is up 5% on the day, once again outperforming Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), as the privacy-focused cryptocurrency is approaching its 10^th anniversary on Oct. 28.

Zcash was launched in 2016, combining Bitcoin-like monetary features with enhanced transaction privacy.

Unlike BTC, where miners receive all block rewards, ZEC allocates 80% to miners and the remaining 20% to a development fund supporting research and ecosystem growth.

This funding model has helped sustain innovation through prolonged bear markets, Grayscale’s head of research Zach Pandl stated on Monday.

Tools introduced by Zcash since 2018 have strengthened its ability to address emerging threats from quantum computing and AI-driven cyberattacks.

Zcash co-founder Sean Bowe has proposed ending the Zcash Community Grants (ZCG) funding stream, which currently receives 8% of newly issued ZEC block rewards.

Under his proposal, those funds would instead flow to the Network Sustainability Mechanism until the third halving.

Bowe argued that ZCG already controls almost $125 million and will receive millions more before the funding stream ends.

The existing treasury should be sufficient to continue supporting ecosystem grants without additional allocations.

The proposal would leave the separate 12% Coinholder-Controlled Fund unchanged.

As Zcash enters its second decade, its focus on scalability, privacy and quantum security, alongside efficient development funding, could determine its long-term competitiveness.

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