Thread by @avichal

1/ I published a ZIP outlining a new approach to Zcash governance after the expiration of the Founder's Reward:
forum.zcashcommunity.com/t/dev-fund-pro…

A short summary of the proposal is below. 👇

Read the full thing for full context.

2/ Background: Cryptocurrencies are network-effect driven. Liquidity, fiat on ramps, developers, miners, users, etc. all create network effects.

The primary driver of success in a network-effect business is how quickly you grow the network effects.

3/ To drive a network effect, you need correct strategy and excellent execution.

If your strategy is incorrect, no matter how well you execute, you fail.

If your execution is not excellent, you cannot assess if lack of progress is due to poor execution or poor strategy.

4/ Proposal: A 20% Developer Fund, a 5-person Council to define strategy and measure progress, and decentralized execution to build in the ecosystem.

The details of the proposal such as a six-month cadence to plan + grading are informed by my experiences at Facebook and Google

5/ A 5-person Strategic Council would be elected by the community every two years. The Strategic Council would determine the strategy, goals, and metrics to evaluate progress for the ecosystem on a six-month cadence.

6/ There are no permanent seats on the Council. 1 seat should be elected by miners. 1 by ZEC holders.

The Council would be responsible for allocating funding to "Executing Entities" for the next six months and summarizing performance of Executing Entities in the prior six months

7/ "Executing Entities" (devs, marketing, designers) would submit proposals to the Strategic Council on a six-month cadence which include project plans, funding plans, and how they will measure success on a scale from 1-10, i.e. what constitutes a 10/10 or a 3/10 in 6 months?

8/ At the end of six months, Executing Entities will grade themselves out of 10 and the Strategic Council will summarize what was accomplished with a target of 7/10 in every 6 mo. on a roll up basis. A 10/10 means teams were not ambitious enough. 3/10 is failure to execute well

9/ Through a separation of responsibilities and chain of accountability back to the community, I believe the Zcash ecosystem can both execute more effectively and be significantly more decentralized (and thus be more resilient).

10/ This comes from a place of wanting to see privacy preserving technologies succeed in the long term. Zcash, Monero, Grin, and improvements to Bitcoin are all interesting approaches. I do not know which will ultimately win but I think it's great that so many are trying.

11/ I'm sure there are lots of flaws and design holes. I hope the submission helps create some useful discussion in the Zcash and crypto community.

Feedback is welcomed and appreciated:
forum.zcashcommunity.com/t/dev-fund-pro…