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    <title>ZIP 1001: Keep the Block Distribution as Initially Defined — 90% to Miners</title>
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        <pre>ZIP: 1001
Title: Keep the Block Distribution as Initially Defined — 90% to Miners
Owners: mistfpga (zcash forums) &lt;steve@mistfpga.net&gt;
Status: Obsolete
Category: Consensus Process
Created: 2019-08-01
License: CC BY-SA 4.0 &lt;<a href="https://creativecommons.org/licenses/by-sa/4.0/">https://creativecommons.org/licenses/by-sa/4.0/</a>&gt;
Discussions-To: &lt;<a href="https://forum.zcashcommunity.com/t/zip-proposal-keep-the-block-distribution-as-initaly-defined-90-to-miners/33843">https://forum.zcashcommunity.com/t/zip-proposal-keep-the-block-distribution-as-initaly-defined-90-to-miners/33843</a>&gt;</pre>
        <section id="terminology"><h2><span class="section-heading">Terminology</span><span class="section-anchor"> <a rel="bookmark" href="#terminology"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <p>The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in RFC 2119. <a id="footnote-reference-1" class="footnote_reference" href="#rfc2119">2</a></p>
            <p>For clarity this ZIP defines these terms:</p>
            <ul>
                <li>Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.</li>
                <li>Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.</li>
                <li>Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).</li>
                <li>Block distribution is defined as the block reward minus transaction fees. <span class="editor-note">the protocol specification uses "block subsidy".</span></li>
                <li>Spirit is defined as what is the intended outcome of the ZIP. <a id="footnote-reference-2" class="footnote_reference" href="#spirit">1</a></li>
                <li>Initial promise is non-neutral language referencing the block distribution rules as initially set out. <a id="footnote-reference-3" class="footnote_reference" href="#funding">3</a></li>
            </ul>
            <table id="spirit" class="footnote">
                <tbody>
                    <tr>
                        <th>1</th>
                        <td>If there is contradiction between Spirit and any other part of the proposal that needs to be addressed, in the event it is not addressed Spirit is assumed to overrule all.</td>
                    </tr>
                </tbody>
            </table>
        </section>
        <section id="abstract"><h2><span class="section-heading">Abstract</span><span class="section-anchor"> <a rel="bookmark" href="#abstract"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <p>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.</p>
            <p>It is a simple short ZIP.</p>
            <p>Hopefully it will be compatible with a number of other ZIPs and can be worked into them.</p>
        </section>
        <section id="out-of-scope-for-this-proposal"><h2><span class="section-heading">Out of Scope for this Proposal</span><span class="section-anchor"> <a rel="bookmark" href="#out-of-scope-for-this-proposal"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <ul>
                <li>Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.</li>
                <li>Future funding.</li>
                <li>It does not cover other donations or revenue streams.</li>
            </ul>
        </section>
        <section id="motivation"><h2><span class="section-heading">Motivation</span><span class="section-anchor"> <a rel="bookmark" href="#motivation"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <ul>
                <li>The Founders’ Reward is set to expire in 2020.</li>
                <li>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.</li>
            </ul>
        </section>
        <section id="requirements"><h2><span class="section-heading">Requirements</span><span class="section-anchor"> <a rel="bookmark" href="#requirements"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <ul>
                <li>The Founders’ Reward MUST end at the first halving in October 2020.</li>
                <li>This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.</li>
            </ul>
        </section>
        <section id="specification"><h2><span class="section-heading">Specification</span><span class="section-anchor"> <a rel="bookmark" href="#specification"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <ul>
                <li>The existing Founders’ Reward consensus rules <a id="footnote-reference-4" class="footnote_reference" href="#spec-subsidies">4</a> <a id="footnote-reference-5" class="footnote_reference" href="#spec-foundersreward">5</a> MUST be preserved.</li>
                <li>Specifically, <code>FoundersReward(height)</code> MUST equal <code>0</code> if <code>Halving(height) &gt;= 1</code>. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in <a id="footnote-reference-6" class="footnote_reference" href="#spec-subsidies">4</a> and <a id="footnote-reference-7" class="footnote_reference" href="#spec-foundersreward">5</a>.)</li>
                <li>This specification is only meant to stop the Founders’ Reward, not protocol-based donations.</li>
                <li>Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.</li>
            </ul>
        </section>
        <section id="implications-to-other-users"><h2><span class="section-heading">Implications to other users</span><span class="section-anchor"> <a rel="bookmark" href="#implications-to-other-users"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <ul>
                <li>Block distribution payouts to Founders’ Reward addresses will cease at the first halving.</li>
                <li>Pools and other software need to take this into account.</li>
            </ul>
        </section>
        <section id="technical-implementation"><h2><span class="section-heading">Technical implementation</span><span class="section-anchor"> <a rel="bookmark" href="#technical-implementation"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <p>This ZIP requires no changes to current consensus implementations.</p>
        </section>
        <section id="references"><h2><span class="section-heading">References</span><span class="section-anchor"> <a rel="bookmark" href="#references"><img width="24" height="24" class="section-anchor" src="assets/images/section-anchor.png" alt=""></a></span></h2>
            <table id="rfc2119" class="footnote">
                <tbody>
                    <tr>
                        <th>2</th>
                        <td><a href="https://www.rfc-editor.org/rfc/rfc2119.html">RFC 2119: Key words for use in RFCs to Indicate Requirement Levels</a></td>
                    </tr>
                </tbody>
            </table>
            <table id="funding" class="footnote">
                <tbody>
                    <tr>
                        <th>3</th>
                        <td><a href="https://electriccoin.co/blog/funding/">Zcash blog: Funding, Incentives, and Governance. February 1, 2016</a></td>
                    </tr>
                </tbody>
            </table>
            <table id="spec-subsidies" class="footnote">
                <tbody>
                    <tr>
                        <th>4</th>
                        <td><a href="protocol/protocol.pdf#subsidies">Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward</a></td>
                    </tr>
                </tbody>
            </table>
            <table id="spec-foundersreward" class="footnote">
                <tbody>
                    <tr>
                        <th>5</th>
                        <td><a href="protocol/protocol.pdf#foundersreward">Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward</a></td>
                    </tr>
                </tbody>
            </table>
        </section>
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