Zcash fell 26.8% over seven days as its founders advanced a plan to move 50,000 ZEC out of the community grants treasury and redirect the fund's share of new coins. ZEC holders vote on the proposal from November 16 to 30.
Zcash (ZEC) traded near $943 on Friday, down 26.8% over seven days and in oversold territory. The slide coincides with a proposal from the project's founders that became an official draft on November 11.
Buyers step in near $880
On the four-hour Binance chart, ZEC fell from a high near $1,388 on November 6 to an intraday low of $880.50 on Friday morning. The source reads the candle's close well above its low as a sign that buyers absorbed the selling. The RSI has stayed below 30 since November 10 and now reads 27.
However, the trend still points down. ZEC is trying to hold $940, with $1,000 as the nearest resistance, and a close under $880 would erase the floor that Friday's buyers built.
What the founders propose
Zcash co-founder Zooko Wilcox, co-founder Sean Bowe and Jason McGee of Shielded Labs want the committee that runs Zcash Community Grants (ZCG) to send 50,000 ZEC, worth about $47 million today, to an address from which no one can spend.
The draft also targets the ongoing flow. ZCG receives 8% of every block reward, and the draft would send that stream into a new lockbox until Zcash's third halving, expected around 2028. Miners keep their 80% share, and the coinholder-controlled fund keeps its 12%.
Bowe first raised the idea on October 27, arguing that ZEC's rally had swollen the treasury while new coins kept arriving automatically.
The price assumption has slipped
The authors valued the treasury at a hypothetical $1,300 per ZEC, which gave ZCG a runway of 6.4 years after the transfer. At $943, the source's table puts that runway at 4.8 years.
Vote and developer data
ZEC holders and community panels vote from November 16 to 30. The poll is non-binding, and if it shows enough support, both changes would go live with a network upgrade called NU7.1 that has no activation date yet.
Separately, Grayscale's November 10 report puts active Zcash developers at roughly 190 to 200, about double the level of two years ago. Grayscale sponsors The Zcash ETF (ZCSH), so it has a commercial stake in the asset.
Source: Crypto News Flash
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