I attended a talk by Zooko Wilcox, one of the chief architects of Zcash, in Bangalore this week. He has vast experience in crypto technologies and has done some pioneering work in the field.
One of the things that Zooko mentioned is that there will continue to be serious ramifications in the way founding teams are compensated. Someone in the audience asked Zooko if a 20% 'Founders Reward' was justified (the Zcash protocol dictates that 20% of all coins mined in the first 4 years will go towards the founding team to aid development, marketing, hiring and other startup activities). Zooko's response was that he preferred it if people started calling this a 'development fund' and not a 'founders reward'.
He also did mention that he intends to spend the rest of his working life working on ZCash.
Our view is that given that this is a revolutionary technology which is very much in its infancy, shouldn't the founders reward, or development fund, be released to the founding team over a much longer period - say ten or fifteen years? After all, revolutionary technologies are never built in 2, 3 or 4 years - they often take decades before their full potential is realized.
If we, as participants in the space, don't start demanding longer periods over which the founding team is remunerated, there is always the chance of developers walking away from a project. This has already happened in the case with Zclassic (ZCL) and as is likely to happen with innumerable number of ICOs. This is a big risk and must be tackled soon.
What do you think? Shoot us an email at [email protected].