Privacy-focused cryptocurrency Zcoin (XZC) has launched a new crowdfunding system similar to one by another major privacy coin, Monero (XMR).
In a Dec. 26 blog post, Zcoin announced the launch of the Zcoin Crowdfunding System (ZCS), a new platform that is designed to serve as shift from direct funding from block rewards to a donation model.
ZCS to help Zcoin to further decentralize the project and fund additional initiatives
The new ZCS system will help further decentralize the project in line with the company’s vision of a privacy-focused cryptocurrency, Zcoin’s project steward Reuben Yap said in the announcement. The executive noted:
“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.”
Specifically, 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, the announcement notes.
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.
Zcoin’s system is basically a modified copy of a similar platform by Monero
As 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, Zcoin executive 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. Yap said:
“We have looked at many funding models including decentralized treasuries where proposals are voted base on stake but these often result in plutocracies.”
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.”
Launched in September 2016, Zcoin is an open-source decentralized privacy altcoin implementing the Zerocoin protocol proposed by Johns Hopkins University professor Matthew Green. Zcoin is known for providing its blockchain for digital elections carried out by the Thai Democrat Party in 2018.
In August 2019, Zcoin rolled out its cryptocurrency for spending in Thailand with any merchant registered with the Thai QR code system through Satang App.
As of press time, Zcoin is ranked the 128th-biggest cryptocurrency by market capitalization, currently at $26 million, according to Coin360.