The owners of the Electric Coin Company (ECC), the company Zcash founded, agreed to donate the company to a new nonprofit called Bootstrap Project.
The ECC made the announcement in an Oct. 12 post in which they state that most of Electric Coin Company owners agreed to donate the company, although the vote is to take place on October 23. This will lead to a project that qualifies as “dedicated to the elevation of humanity through technology, scientific discovery, education and human organization.”
After the vote, the change will take place on an unannounced date before the update of the Zcash “Canopy” network, scheduled for next November.
The organization explains that with this hybrid “business / non-profit” structure they hope to provide the best of both worlds. The main plan is to continue as a startup in terms of business activities, customer orientation, and a very detailed focus on development. At the same time, they are seeking to achieve a better governance system for a public service mission-oriented organization.
Thus, with CCE’s donation to Bootstrap, they consider the promotion of a greater decentralization of Zcash, as well as greater tax benefits. It is added that although full ownership will be transferred to Bootstrap, this will not imply a modification of the organizational structure.
Therefore, management, employees, and operations will remain the same. Initially, Bootstrap’s Board of Directors will be the same as ECC’s. However, additional members are expected to join in late 2021, “to provide a greater diversity of stakeholders, demographics, and expertise.”
They request to maintain funding from the fund for Zcash
In the publication of the ECC, the community is requested that, following the previously agreed changes, in the next four years the ECC will continue to receive 7% of the mining rewards.
“Under this model, the donation from the Zcash community would flow to a non-owner, for-profit, tax-exempt public charity that implements the community’s intentions as expressed in agreement 1014,” they say. It is said that the rewards will thus be used to finance the “advancement of the new mission”, rather than going towards the fulfillment of the previous work of the ECC.
It is relevant that this 7% in order donate to the ECC is actually part of the 20% of the mining rewards that will go to a development fund. In that sense, the statement does not make it clear if the rest of that 20% will be distributed.
The agreement estipulates the allocation of 8% for the Major Subsidy Fund, and 5% for the Zcash Foundation. This is the new financing system to be implemented from block 1,046,400, coinciding with the first halving of Zcash, a mechanism for reducing rewards also estimated for November.
Considering the arguments presented in a discussion at the Zcash Community Forum earlier in the year, the ECC’s donation to Bootstrap would be seen as a very advantageous move. The forum discussed the possibility that the company switches to a non-profit organization, a fact considered as a favorable way to reduce corporate and fiscal control.
By: Jenson Nuñez.