Zcash (ZEC) traded at approximately $979 on November 12, registering a 3.7% drop over the previous 24 hours and extending losses to more than 25% for the week. This pullback comes ahead of a key community vote that could remove 50,000 ZEC, equal to around $49 million, from the network’s grants treasury.
Proposal to Reduce Treasury Funds
A draft Zcash Improvement Proposal submitted by Sean Bowe, Zooko Wilcox, and Jason McGee was merged into Zcash’s technical specifications on November 11. The proposal aims to withdraw 50,000 ZEC from Zcash Community Grants (ZCG) and end its 8% allocation of new block rewards.
ZCG had a reported balance of 93,657.47 ZEC on November 7, making the proposed cut equivalent to about 53.4% of its treasury at current values. The coins earmarked for removal would be reassigned to the Network Sustainability Mechanism, which redistributes value through block rewards. The authors cited ZEC’s recent price rally as a reason for reducing the size of the grants treasury while keeping the initiative operational.
If accepted, the ongoing 8% distribution to ZCG would instead be redirected into a new Future Dev and Legal Defense Fund Lockbox until the third halving event. This lockbox could not release funds until further governance determines withdrawal procedures. Community polling on the proposal is scheduled from November 16 to November 30.
Mini dictionary: Zcash Community Grants (ZCG) is a decentralized funding mechanism supporting projects that benefit the Zcash ecosystem, enabling community-driven grant allocations.
The proposed changes would remove more than half of the ZCG treasury and redirect future funds into a lockbox, pausing direct grant spending until new conditions are set by governance.
Grayscale Activity and Outflows
Asset manager Grayscale Investments, known for its cryptocurrency-focused investment funds, announced that it will donate 100% of sponsor fees from its ZCSH exchange-traded product for up to one year to support Zcash development and educational initiatives. In November, Grayscale distributed $400,000 equally among organizations including the Zcash Foundation, Shielded Labs, Project Tachyon, and Pretty Good Policy for Zcash.
Despite these efforts, Grayscale’s ZCSH fund experienced nearly $30 million in net outflows during November. These developments follow broader volatility in the ZEC market, with traders facing significant liquidations and price swings.
Volatility and Technical Levels
Recent trading saw ZEC price fluctuate between $950 and $1,020, reversing gains from the prior week’s rally, when the coin climbed above $1,370. Market analysts highlighted $1,350 as a resistance point, while the current decline has tested key support levels. On the daily chart, ZEC is trading below its 20-day moving average of $1,206.82 and near its lower Bollinger Band at $1,005.11. Immediate support is identified at $960–$980, with additional levels at $900 and $800.
Analyst Altcoin Sherpa suggested Zcash may find a tentative bottom between $800 and $900 before any potential rebound, but also noted the possibility of further downside if market sentiment fails to improve.
| Metric | Current Value | Reference |
|---|---|---|
| Price | $979 | November 12 |
| 24h Change | -3.7% | |
| Weekly Change | -25% | |
| 20-day Moving Avg. | $1,206.82 | |
| Lower Bollinger Band | $1,005.11 | |
| ZCG Treasury (Nov. 7) | 93,657.47 ZEC | |
| ZEC to Remove | 50,000 ZEC | |
| Grayscale ZCSH Outflows | $30 million | November |
| Liquidations (24h) | $18 million | Mostly longs |
CoinGlass data revealed that ZEC liquidations topped $18 million within 24 hours, with the majority being long positions. Open interest remained high at $2.12 billion, and the taker buy/sell ratio at 0.96 indicated increased market selling pressure.
On trading signals, technical analyst Crypto Patel advised traders to secure partial gains and set stop-losses, observing a possible decline toward the $500 to $200 price range as a speculative risk. Meanwhile, the 14-day Relative Strength Index stood at 34, approaching the oversold threshold of 30. For a technical recovery, ZEC would need to reclaim levels above $1,005 to move back inside its main trading bands.
Analysts noted that a return above $1,005 would be necessary for ZEC to regain its former technical range, following the recent pullback that has left the asset trading below major averages.
Recent Upgrades and Community Governance
The recent sell-off followed the NU7 upgrade on November 6, which shortened the Zcash network’s target block time from 75 seconds to 25 seconds and modified shielded transaction parameters.
Mini dictionary: The NU7 upgrade for Zcash introduced major changes to block production speed and privacy features, aiming to improve efficiency while maintaining network security.
Polling for the proposed treasury cut will run from November 16 through November 30, allowing participants to support, reject, or abstain on the measure, with options for keeping the treasury unchanged. Should the proposal gather significant consensus, Zcash engineers and miners will coordinate on scheduling the next network update, known as NU7.1.
Separately, Zcash’s current window for submitting new community funding proposals is set to close on November 13, adding another layer of governance activity to the protocol’s agenda.
