We are proud to launch our Zcoin Crowdfunding System (ZCS) https://t.co/jdlhvVXvzp to encourage greater decentralization in funding and development. https://t.co/iQup3ZHiJ0 $XZC pic.twitter.com/MhtKawEyCq — Zcoin (@zcoinofficial) December 26, 2019
On December 26, it has been reported that Zcoin announced the launch of the Zcoin Crowdfunding System (ZCS), a new platform that is designed to serve as a shift from direct funding from block rewards to a donation model.
However, Reuben Yap, the project steward of Zcoin, said in the announcement that the new ZCS system will help further decentralize the project in line with the company’s vision of a privacy-focused cryptocurrency.
Privacy-Focused Zcoin Launches Funding Project Similar to Monero CCS https://t.co/IIEeMLn5g4 pic.twitter.com/tNn97vddjl — Crypto World News (@cryptoworldnews) December 27, 2019
“As a privacy project, decentralization is essential for long term sustainability which includes governance and funding. While a block reward has served us well in building the foundations of Zcoin it can result in over-reliance on the core team.”
Likewise, the announcement notes that the ZCS system enables participation from any community members who can propose, approve and fund multiple activities. Any community member can now submit an idea or proposal to Zcoin in order to get donators to start funding it.
It has been analyzed that the ZCS funding system will also allow Zcoin to start funding additional initiatives including non-core development, community management, and events, as well as third party integrations.
In order to provide transparent records of all proposals and amendments, the ZSC implements Zcoin‘s GitHub.
As it has been mentioned in the post, the ZCS is inspired by a similar crowdfunding platform used by Monero, the Monero Community Crowdfunding System (CCS). In fact, Zcoin’s ZCS website interface is basically a modified replica of the Monero CCS, including website sections such as “Ideas,” “Funding Required,” “Work in Progress,” “Completed Tasks,” and others.
In the post, Yap noted that ZCS “draws from the good example set by the Monero CCS” and demonstrates that competitors in privacy-oriented projects can “complement one another including drawing inspiration from each other and collaborating in research.” He added that the firm considered a number of funding models before making their choice.
“We have looked at many funding models including decentralized treasuries where proposals are voted base on stake but these often result in plutocracies.”
However, the news comes a month after Zcoin outlined its plans to further decentralize the project and eliminate “any single point of failure be it in the development, technology, funding and decision making.”
Thus, according to Coin360, Zcoin is ranked the 128th-biggest cryptocurrency by market capitalization, currently at $26 million.