Dragonfly’s Qureshi calls for end to Zcash dev fund after 2028

Dragonfly managing partner Haseeb Qureshi urged the Zcash community to let the protocol’s development fund expire under existing rules in 2028, writing that the pot is now large enough to cover remaining work and warning it could become politicized as its value approaches $100 million. The fund, often called the lockbox, currently holds 63,962 ZEC — about $95 million at press time, per ZecStats. Qureshi’s post has reopened a broader industry discussion sparked by ZEC’s rally and the consequent increase in the fund’s balance. Some participants in the debate argue for keeping the fund to ensure ongoing protocol development and security, while others say winding it down or removing it would resolve governance disputes. Paradigm founder Matt Huang emphasized the fund’s importance given modern cyber risks and rapid quantum advances, framing it as valuable for resilience. Opinions diverge not only on whether the fund should continue but also on how it should be controlled. Qureshi opposed moving to pure token-holder voting for disbursements but supported a model in which token holders elect temporary councils to make decisions. Huang similarly warned that sole token-holder governance could introduce unpredictability and suggested a hybrid governance approach. By contrast, Maxime Desalle of Winklevoss Capital advocated eliminating the fund entirely to avoid governance conflicts and potential security downsides. By protocol design, the development fund accrues 0.1875 ZEC per block — representing 12% of the block subsidy under the NU6 upgrade — and its balance remains outside circulation until allocated via governance. Zcash founder Zooko Wilcox has defended the role of structured grant-making, noting the Zcash Community Grants Committee’s contribution to the project’s survival and growth, and clarified that the committee accounts for 40% of the development fund. As the community assesses options ahead of the fund’s 2028 expiration, the debate centers on balancing long-term funding for development, governance stability, and the risks of politicization as the fund’s dollar value increases.