The ZEC token has seen price gains despite the downturn of the broader market. This comes as developers push forward a new dynamic fee model to make Zcash stronger and protect its investors.
Why is Zcash Price Rising Today?
ZEC jumped almost 14% during the last 24 hours vastly outperforming the broader market, which is basically in a dip. This move comes as developers introduce a major proposal aimed at reworking the network’s troubled fee system to keep up with surging demand and recent market conditions.
Source: CoinMarketCap; ZEC Price Daily ChartShielded Labs has recommended that it abandon its static fee model for a median-based dynamic structure. This was originally set at 10,000 zatoshis and later reduced to 1,000. This system will change fees based on typical transaction activity in the last 50 blocks. It will also use synthetic “comparables” to mimic a steady network load.
This would help reduce spam transactions that slow down the network and make fees easier to predict for regular users. Developers say that having fixed fees has caused congestion in the past. One example is spam attacks that have overloaded shielded wallets.
About 30% of the token’s supply is already shielded. To attract more new users and institutions, it is crucial to improve efficiency.
They also note that, because of the fluctuations in the token’s price, abnormally high transaction costs have been reported by users in some edge cases. The upgrade is meant to address the issue before it becomes a major problem.
This comes after the coin saw some price dip. At the time, Max Keiser said that Zcash’s “pump-and-dump” cycle is over. He said the price was likely to crash to about $55. Samson Mow also shared similar thoughts.
Momentum Builds as Treasuries Expand Holdings
The token has continued to be adopted by institutions. For instance, the Winklevoss twins launched a Zcash treasury vehicle. The firm has acquired 200,000 ZEC since November, worth more than $80 million. They eventually hope to own roughly 5% of the total circulating supply.
To add, another treasury entity, Reliance Global moved all its digital asset holdings into ZEC. The company has liquidated all other positions to focus exclusively on the token.
In particular, Grayscale filed with the regulator to convert the existing Grayscale Zcash Trust into a spot ETF. According to the filing, the ETF would hold the token and track its CoinDesk Price Index.
Adding to its growth, the SEC invited its founder, Zooko Wilcox to participate in its December 15 roundtable on privacy and financial surveillance. The discussion comes in the context of growing momentum for its utility.
Source: https://coingape.com/zcash-news-zec-jumps-13-after-team-proposes-dynamic-fee-model-to-protect-users/
