From 36060f65f19117453b3fa5da66a74f3219d994fe Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 10:25:55 -0400 Subject: [PATCH 1/7] update zip-233.md with issuance specification --- zips/zip-0233.md | 18 +++++++++++------- 1 file changed, 11 insertions(+), 7 deletions(-) diff --git a/zips/zip-0233.md b/zips/zip-0233.md index bca2ef1f7..af4a81eaa 100644 --- a/zips/zip-0233.md +++ b/zips/zip-0233.md @@ -51,10 +51,12 @@ checks. # Abstract This ZIP proposes the introduction of a mechanism to voluntarily remove funds -entirely from circulation on the network. This mechanism, in combination with -ZIP 234 [^zip-0234] and ZIP 235 [^zip-0235], comprises a long-term strategy for -the sustainability of the network. We will refer to the combined effects of -these three ZIPs as the “Network Sustainability Mechanism”. +entirely from circulation on the network. The explicit intent of this removal +is that the funds will be returned to circulation through future block subsidies, +rather than being permanently destroyed or held in reserve for discretionary use. +This mechanism, in combination with ZIP 234 and ZIP 235 [^zip-0235], comprises a +long-term strategy for the sustainability of the network. We will refer to the +combined effects of these three ZIPs as the “Network Sustainability Mechanism”. # Motivation @@ -66,7 +68,9 @@ design shared by Bitcoin-like systems: circulation, the network gains the ability to create "headroom" between the chain value and $\mathsf{MAX\_MONEY}$. This lays necessary groundwork for extending the block subsidy system, which currently has a clear final end - date. + date. The intent is that removed funds will be automatically and + algorithmically reissued through future block subsidies, sustaining the + network's long-term security budget. 2. **Benefits to ZEC Holders:** Removing funds from circulation reduces the circulating supply of ZEC. To the extent that this potentially contributes to an increase in the value of remaining ZEC, it can be argued to benefit network @@ -100,8 +104,8 @@ chain value pool, and therefore from the point at which the transaction is applied to the global chain state, $\mathsf{zip233\_amount}$ is subtracted from the issued supply. It is unavailable for circulation on the network at least through to the end of the block in which the transaction is mined. ZIP 234 -[^zip-0234] specifies a potential mechanism by which the funds removed from -circulation would again become available. +[^zip-0234] specifies the mechanism by which the funds removed from +circulation are reissued through future block subsidies. ## Changes to ZIP 230 [^zip-0230] From c5f6221964ed61e66e31afbdfec90c4fb403025b Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 10:26:31 -0400 Subject: [PATCH 2/7] update ZIP-234 with network security detail --- zips/zip-0234.md | 9 +++++---- 1 file changed, 5 insertions(+), 4 deletions(-) diff --git a/zips/zip-0234.md b/zips/zip-0234.md index 2ba717898..9c34e9115 100644 --- a/zips/zip-0234.md +++ b/zips/zip-0234.md @@ -112,10 +112,11 @@ mitigate the risks associated with abrupt changes in issuance rates. This new NSM-based issuance scheme addresses these problems by ensuring a more consistent and predictable rate of coin issuance, while preserving the core -aspects of Zcash's issuance policy and the 21-million-coin cap. At the same -time, it introduces the first mechanism to reissue and distribute ZEC that has -been voluntarily removed from circulation, as well as transaction fees that are -deliberately redirected into the reserve, over future block subsidies. +aspects of Zcash's issuance policy and the 21-million-coin cap. Critically, +it establishes the intended path for ZEC that has been voluntarily removed from +circulation, as well as transaction fees that are deliberately redirected into +the reserve: these funds are automatically and algorithmically reissued over +future block subsidies, ensuring they benefit the network's long-term security. # Requirements From 8b2389f0322330faf259201406256b2966f39b31 Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 10:26:53 -0400 Subject: [PATCH 3/7] update ZIP-235 with issuance specification --- zips/zip-0235.md | 18 +++++++++--------- 1 file changed, 9 insertions(+), 9 deletions(-) diff --git a/zips/zip-0235.md b/zips/zip-0235.md index 42709f412..4646e622b 100644 --- a/zips/zip-0235.md +++ b/zips/zip-0235.md @@ -44,9 +44,10 @@ ZIP 233. [^zip-0233] # Abstract This ZIP proposes to remove 60% of transaction fees from circulation, while -the remaining 40% is directed as before, providing a deflationary effect, and -building the groundwork for long-term support of the Zcash network via the new -block subsidy rules proposed by ZIP 234 [^zip-0234]. +the remaining 40% is directed as before. The intent of this removal is that the +funds will be automatically and algorithmically reissued through future block +subsidies, rather than being permanently destroyed or held as a discretionary +reserve. # Motivation @@ -63,9 +64,8 @@ of the network as described below: 1. **Network Sustainability**: This mechanism involves temporarily reducing the supply of ZEC, similar to asset burning in Ethereum’s EIP-1559 [^eip-1559], - but with long-term sustainability benefits, as the funds removed from - circulation effectively boost future mining rewards, making it an attractive - option for current and future Zcash users. + but with long-term sustainability benefits. Unlike a permanent burn, the + removed funds are intended to be reissued through future block subsidies. 2. **Incentivizing Transaction Inclusion**: By maintaining a 40% share of transaction fees for miners, we continue incentivizing miners to prioritize including transactions in their blocks. This helps ensure the continued @@ -81,9 +81,9 @@ of the network as described below: network's reputation and security. 4. **Future-Proofing the Network**: Removing a portion of transaction fees from circulation is a forward-looking approach that prepares the Zcash network for - future challenges and opportunities. It establishes a financial buffer that - can be instrumental in addressing unforeseen issues and seizing strategic - advantages as the Zcash ecosystem evolves. + long-term sustainability. By returning these funds to circulation through + future block subsidies, the network maintains a viable security budget + beyond the original issuance schedule. # Requirements From 094bb0579b59dce551c9d99838c215058d2f6804 Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 10:27:09 -0400 Subject: [PATCH 4/7] update ZIP-315 with wallet language suggestion --- zips/zip-0315.rst | 21 +++++++++++++++++++++ 1 file changed, 21 insertions(+) diff --git a/zips/zip-0315.rst b/zips/zip-0315.rst index df3c381da..5229a7d51 100644 --- a/zips/zip-0315.rst +++ b/zips/zip-0315.rst @@ -442,6 +442,25 @@ have an expiry height), and their balances as described in `Reporting of balances`_. +Display of voluntary fund removal +'''''''''''''''''''''''''''''''''' + +Wallets that support voluntary removal of funds from circulation as specified +in ZIP 233 [#zip-0233]_ SHOULD display clear, user-friendly messaging at +transaction confirmation time explaining the purpose and effect of the removal. + +For example, a wallet might display: + + "These funds will be used for network sustainability purposes. They will + be gradually reissued to support the long-term security of the Zcash + network." + +This guidance applies to user-initiated voluntary removals via ZIP 233. It +does not apply to the automatic removal of transaction fees specified in +ZIP 235 [#zip-0235]_, which occurs without user action and does not require +explicit user confirmation. + + Transaction creation -------------------- @@ -780,6 +799,8 @@ References .. [#zip-0032-wallet-seeds] `ZIP 32: Shielded Hierarchical Deterministic Wallets — Specification: Wallet seeds `_ .. [#zip-0032-wallet-usage] `ZIP 32: Shielded Hierarchical Deterministic Wallets — Specification: Wallet usage `_ .. [#zip-0203] `ZIP 203: Transaction Expiry `_ +.. [#zip-0233] `ZIP 233: Network Sustainability Mechanism: Removing Funds From Circulation `_ +.. [#zip-0235] `ZIP 235: Remove 60% of Transaction Fees From Circulation `_ .. [#zip-0316] `ZIP 316: Unified Addresses and Unified Viewing Keys `_ .. [#zip-0316-deriving-a-unified-address] `ZIP 316: Unified Addresses and Unified Viewing Keys — Deriving a Unified Address from a UIVK `_ .. [#zip-0317] `ZIP 317: Proportional Transfer Fee Mechanism `_ From 2d28208f3fdf2356b59cd2a8a36cf689691254c1 Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 11:37:34 -0400 Subject: [PATCH 5/7] add note on NSM ZIPs in network upgrade --- zips/zip-0233.md | 4 +++- 1 file changed, 3 insertions(+), 1 deletion(-) diff --git a/zips/zip-0233.md b/zips/zip-0233.md index af4a81eaa..8b31d3c68 100644 --- a/zips/zip-0233.md +++ b/zips/zip-0233.md @@ -70,7 +70,9 @@ design shared by Bitcoin-like systems: extending the block subsidy system, which currently has a clear final end date. The intent is that removed funds will be automatically and algorithmically reissued through future block subsidies, sustaining the - network's long-term security budget. + network's long-term security budget, whether or not all three ZIPs + comprising the Network Sustainability Mechanism are deployed in the same + network upgrade. 2. **Benefits to ZEC Holders:** Removing funds from circulation reduces the circulating supply of ZEC. To the extent that this potentially contributes to an increase in the value of remaining ZEC, it can be argued to benefit network From f6b787a83f67f82467351f22ece7c63a75b799b4 Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Thu, 12 Mar 2026 11:38:00 -0400 Subject: [PATCH 6/7] remove ZIP-234 from ZIP-235 deployment requirements --- zips/zip-0235.md | 3 +-- 1 file changed, 1 insertion(+), 2 deletions(-) diff --git a/zips/zip-0235.md b/zips/zip-0235.md index 4646e622b..df8b840ea 100644 --- a/zips/zip-0235.md +++ b/zips/zip-0235.md @@ -167,8 +167,7 @@ support network sustainability, including but not limited to: # Deployment The implementation of this ZIP MUST be deployed at the same time or after -ZIP 233 ("NSM: Removing Funds From Circulation" [^zip-0233]), and ZIP 234 ("NSM: -Issuance Smoothing" [^zip-0234]). +ZIP 233 ("NSM: Removing Funds From Circulation" [^zip-0233]). # References From e5783927c8a2e565e2bb342e5616cbc03d439ee5 Mon Sep 17 00:00:00 2001 From: Mark Henderson Date: Wed, 18 Mar 2026 17:20:54 -0400 Subject: [PATCH 7/7] Update zips/zip-0233.md Co-authored-by: Kris Nuttycombe --- zips/zip-0233.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/zips/zip-0233.md b/zips/zip-0233.md index 8b31d3c68..54ed1bc6a 100644 --- a/zips/zip-0233.md +++ b/zips/zip-0233.md @@ -106,8 +106,8 @@ chain value pool, and therefore from the point at which the transaction is applied to the global chain state, $\mathsf{zip233\_amount}$ is subtracted from the issued supply. It is unavailable for circulation on the network at least through to the end of the block in which the transaction is mined. ZIP 234 -[^zip-0234] specifies the mechanism by which the funds removed from -circulation are reissued through future block subsidies. +[^zip-0234] specifies a mechanism by which the funds removed from +circulation may be reissued through future block subsidies. ## Changes to ZIP 230 [^zip-0230]