The occasion was marked by the implementation of the Canopy upgrade, which creates a development fund for the platform and removes the controversial “Founders Reward”.
The halving and upgrade took place at block 1,046,400, just over four years after Zcash was first mined in late October 2016.
Canopy is the fifth major upgrade to Zcash, which mainly consists of the change in mining rewards distribution. Before that, funding for the development of the platform could potentially expire at the point of the first halving. Technical upgrades were relatively minor, with three improvement proposals adjusting some security and performance parameters.
Proposed and endorsed by the Zcash community, the changes provide a fund of continued development for the next four years.
While 80% of mining rewards still go to the miners, 8% is now reserved for the Major Grants Fund. This is reserved exclusively for independent third-party developers.
The remaining 12% will be split between the Electric Coin Company, which will receive 7%, and the Zcash Foundation, which will collect the remaining 5%.
The change mainly affects the founders and employees of ECC, while the share reserved for the company itself has increased slightly. In addition, involving external teams in the Zcash development environment was seen by the community as essential to ensure the integrity and growth of the protocol in a decentralized manner.
Previously, the 20% of network rewards that didn’t go to miners were shared between the ECC, the Zcash Foundation, and the founders and investors who helped set up Zcash. The community’s strongest point of contention was the last share, as the original founders accounted for the lion’s share of 14.2% of the entire mining payout.
As Cointelegraph reported, the ECC recently released are updated and more efficient “Halo 2” source code in the public domain.