# ZIP 1001: Keep the Block Distribution as Initially Defined — 90% to Miners

Status: Obsolete

Owners: mistfpga (zcash forums)

Snapshot: a34cfc091434275120ff017c92c3b50d3cef623a

Source date: 2026-10-16T02:56:04+01:00

[Source revision](https://github.com/zcash/zips/commit/a34cfc091434275120ff017c92c3b50d3cef623a)

[Official source](https://zips.z.cash/zip-1001) · [Source file](https://github.com/zcash/zips/blob/a34cfc091434275120ff017c92c3b50d3cef623a/zips/zip-1001.rst) · [Discussion](https://forum.zcashcommunity.com/t/zip-proposal-keep-the-block-distribution-as-initaly-defined-90-to-miners/33843)

Preamble

**ZIP**: 1001

**Title**: Keep the Block Distribution as Initially Defined — 90% to Miners

**Owners**: [mistfpga (zcash forums)](mailto:steve@mistfpga.net)

**Status**: Obsolete

**Category**: Consensus Process

**Created**: 2019-08-01

**License**: CC BY-SA 4.0 [https://creativecommons.org/licenses/by-sa/4.0/](https://creativecommons.org/licenses/by-sa/4.0/)

**Discussions-To**: [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 id="terminology"></a>

## Terminology

The key words "MUST", "MUST NOT", "SHOULD", and "SHOULD NOT" in this document are to be interpreted as described in BCP 14<a id="fnref1"></a>
[1](#fn1) when, and only when, they appear in all capitals.

For clarity this ZIP defines these terms:

- Mining software in the context of this ZIP refers to pool software, local mining software, or staking software.

- Mining is defined as the action of processing transactions, so this would include proof of stake, if Zcash would switch to that.

- Mining coins transferred via fees are considered rewards (infinite), coins generated via block generation are considered distribution (finite).

- Block distribution is defined as the block reward minus transaction fees. the protocol specification uses "block subsidy".

- Spirit is defined as what is the intended outcome of the ZIP.<a id="fnref2"></a>
  [2](#fn2)

- Initial promise is non-neutral language referencing the block distribution rules as initially set out.<a id="fnref3"></a>
  [3](#fn3)

<a id="abstract"></a>

## Abstract

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.

It is a simple short ZIP.

Hopefully it will be compatible with a number of other ZIPs and can be worked into them.

<a id="out-of-scope-for-this-proposal"></a>

## Out of Scope for this Proposal

- Governance on how decisions are made; this ZIP is not meant to be used as a form of governance.

- Future funding.

- It does not cover other donations or revenue streams.

<a id="motivation"></a>

## Motivation

- The Founders’ Reward is set to expire in 2020.

- 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.

<a id="requirements"></a>

## Requirements

- The Founders’ Reward MUST end at the first halving in October 2020.

- This ZIP does not preclude the Electric Coin Company from sourcing funding elsewhere, or from donations.

<a id="specification"></a>

## Specification

- The existing Founders’ Reward consensus rules<a id="fnref4"></a>
  [4](#fn4) <a id="fnref5"></a>
  [5](#fn5) MUST be preserved.

- Specifically, `FoundersReward(height)` MUST equal `0` if `Halving(height) >= 1`. (For clarity once the halving happens the Founders’ Reward stops, as per the rules outlined in<a id="fnref6"></a>
  [6](#fn6) and<a id="fnref7"></a>
  [7](#fn7).)

- This specification is only meant to stop the Founders’ Reward, not protocol-based donations.

- Enforcing some kind of mandatory donation via whatever mechanism would be seen as continuation of the Founders’ Reward.

<a id="implications-to-other-users"></a>

## Implications to other users

- Block distribution payouts to Founders’ Reward addresses will cease at the first halving.

- Pools and other software need to take this into account.

<a id="technical-implementation"></a>

## Technical implementation

This ZIP requires no changes to current consensus implementations.

<a id="references"></a>

## References

---

1. [Information on BCP 14 — "RFC 2119: Key words for use in RFCs to Indicate Requirement Levels" and "RFC 8174: Ambiguity of Uppercase vs Lowercase in RFC 2119 Key Words"](https://www.rfc-editor.org/info/bcp14)[↩︎](#fnref1)

2. 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.[↩︎](#fnref2)

3. [Zcash blog: Funding, Incentives, and Governance. February 1, 2016](https://electriccoin.co/blog/funding/)[↩︎](#fnref3)

4. [Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward](protocol/protocol.pdf#subsidies)[↩︎](#fnref4)

5. [Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward](protocol/protocol.pdf#foundersreward)[↩︎](#fnref5)

6. [Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.7: Calculation of Block Subsidy and Founders Reward](protocol/protocol.pdf#subsidies)[↩︎](#fnref6)

7. [Zcash Protocol Specification, Version 2019.0.8 exactly. Section 7.8: Payment of Founders’ Reward](protocol/protocol.pdf#foundersreward)[↩︎](#fnref7)

## Citation relationships

Cites: None

Cited by: None