The occasion was marked by the implementation of the cover upgrade, which establishes a development fund for the platform and removes the controversial “Founders Reward.”
The halving and upgrade occurred at block 1,046,400, just over 4 years after Zcash was first mined earlier in October 2016.
Canopy is the 5th major upgrade to Zcash, primarily consisting of the change to the mining rewards distribution. Before this, funding for the event of the platform was potentially set to expire at the purpose of the primary halving. Technical upgrades were relatively minor, with three improvement proposals tweaking some security and performance parameters.
The amendments, that were proposed and ratified by the Zcash community, establish a continued development fund for the subsequent 4 years.
While 80% of mining rewards will still attend the miners, 8% will now be reserved for the Main Grants Fund. This will be exclusively reserved for independent 3rd-party developers.
The remaining 12% are going to be split between the Electric Coin Company, which will receive 7%, and therefore the Zcash Foundation, which will then collect the remaining 5%.
The amendment primarily impacts the founders and employees of ECC, while the share reserved for the corporate itself has been raised slightly. While additionally, bringing external teams into the Zcash development environment was seen by the community as essential to make sure the integrity and growth of the protocol within a decentralized manner.
Prior to the 20% of network rewards that didn’t attend miners were split between the ECC, the Zcash Foundation, and therefore the founders and investors who helped create Zcash. The community’s strongest point of contention was the latter share, as the initial founders took the lion’s share of 14.2% of the whole mining reward.