Zcash (ZEC) traded near $979 on November 12, down 3.7% in 24 hours and over 25% this week. The decline comes as the community prepares to vote on a proposal to remove 50,000 ZEC from the network's grants treasury.
ZEC moved between $950 and $1,020 during the session. The price drop reverses much of the previous week's gains, after ZEC climbed above $1,370 on November 6.
Treasury Proposal Details
A draft Zcash Improvement Proposal merged into the network's specifications on November 11 would remove 50,000 ZEC from Zcash Community Grants (ZCG), representing approximately 53.4% of the treasury's balance. The proposal would also end ZCG's 8% share of new block rewards.
The removed coins would be credited to the Network Sustainability Mechanism, which returns value through future block rewards. The removed ZEC stream would instead flow into a new Future Dev and Legal Defense Fund Lockbox until the third halving, with withdrawal rules to be determined by a separate proposal.
Community polling on the plan runs from November 16 to November 30, allowing participants to support, oppose, or abstain on each option, including keeping ZCG unchanged.
Market Pressures and Trading Activity
Leveraged traders have taken losses during the recent decline. Approximately $18 million in ZEC liquidations occurred over 24 hours, with long positions accounting for roughly 72% of the total. Open interest stood near $2.12 billion.
On the daily chart, ZEC trades below its 20-day moving average of $1,206.82 and its lower Bollinger Band at $1,005.11. The 14-day RSI sat near 34, approaching oversold levels.
Grayscale's Zcash ETF (ZCSH) recorded nearly $30 million in net outflows in November through November 11. The company announced it would direct 100% of sponsor fees from the fund toward Zcash development and education for up to one year, having already awarded $400,000 across four ecosystem projects.
Recent Network Changes
The price decline follows the November 6 NU7 upgrade, which reduced the target block time from 75 seconds to 25 seconds and changed limits on shielded transactions.
