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The biggest criticism of Zcash is the Founder's Reward. Some people say it's greedy, that they should have given away their work for free. I disagree. I think
by Panino 10y ago
The biggest criticism of Zcash is the Founder's Reward. Some people say it's greedy, that they should have given away their work for free. I disagree. I think it's great that they will get paid for their work, and it also gives me confidence for the future of the coin. They have an incentive to make Zcash a long-term success. Getting paid for work done should be the default, of course. I could understand that if a billionaire ran a lemonade stand for an afternoon and steadfastly demanded payment with no free handouts, people would criticize that. But it should be expected that normal people get paid for doing real work.
- petertodd 10y agoThe founders reward is extremely high, so high that the founders have a significant ability to manipulate the market. This is a concern in part because the founders may be forced to do that - the actual implementation is with a single address, rotated periodically, which means that address is a single-point-of-failure for the whole currency in the sense that compromising it can be used to crash the price. Finally, 20% is high enough that it gives a significant advantage to 51% attackers.
- daira 10y agoThe concern in that last sentence seems misplaced; there is no relation between proportion of monetary base held by an attacker, and proportion of mining power held by an attacker.
- petertodd 10y agoThe problem is that it reduces the cost for an attacker; why do you think monetary base has anything to do with it?