What is the issue volume of Zcash? An article introduces the application scenarios of Zcash

Zcash's issue volume, combining initial issuance, block rewards, founder's rewards, and Zcash Foundation allocations, continues to increase through mining but is subject to halving events that diminish block rewards.

Oct 06, 2024 at 01:35 pm

What is the Issue Volume of Zcash?

Zcash is a privacy-centric cryptocurrency that utilizes zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs) to provide enhanced transaction privacy. Zcash's issue volume, or total supply, is determined by several factors.

1. Initial Issuance
Upon its launch in October 2016, Zcash had an initial issuance of 10 million ZEC. This supply was distributed to miners, founders, investors, and Zcash Foundation.

2. Block Rewards
New ZEC tokens are created as block rewards for miners. Currently, the block reward is set at 6.25 ZEC per block. This block reward is halved every four years, known as a halving event.

3. Founder's Reward
The Zcash founders receive an ongoing reward of 2.5% of the block reward for the first four years of issuance. This reward was reduced to 1.25% after the first halving in October 2020.

4. Zcash Foundation
A portion of the block reward (12%) is allocated to the Zcash Foundation, a non-profit organization that supports Zcash development and adoption.

Total Issue Volume
Combining these factors, the total issue volume of Zcash is calculated as follows:

• Initial issuance: 10 million ZEC
• Block rewards (pre-halving): 6.25 ZEC per block
• Founder's reward: 2.5% of block reward (until October 2020)
• Zcash Foundation allocation: 12% of block reward

As of March 1, 2023, there are approximately 15,842,864 ZEC in circulation. This number will continue to increase as new blocks are mined.

Conclusion
The issue volume of Zcash is determined by its initial issuance, block rewards, founder's reward, and Zcash Foundation allocation. The total supply will increase over time due to mining rewards but is affected by halving events that reduce the block reward.