In an attempt to cushion the effects of dwindling market prices and meet up with strategic objectives, Horizen has proposed increasing the percentage of block rewards allotted to its treasury pool. The treasury pool will now receive 20% of block rewards, instead of the current 10% that comes from the mining pool.

The Horizen team in an official blog post noted the reasons behind this proposition. The primary challenge being faced by Horizen and a host of other cryptos is decrease in prices; the overall market cap of cryptos (including the market cap of ZEN) is down by about 90% since the beginning of the year. The team did not envisage these volatile price actions and the duration they would last when planning their budget. For this reason, they must make pertinent changes to stay afloat.

Source Horizen Blog

Before arriving at the decision to increase the treasury pool to 20% of block rewards, the team had taken other steps which in their words were “not enough!” They cut down on the number of events, paid integrations, contracts, sponsorships, and even started laying off workers. Sadly, these were not enough and the best line of action is to increase the rewards that go to their treasury pool.

Source Horizen Blog

It is worth noting that although this may appear as the best line of action, members of the Horizen community can overturn the decision once Treasury DAO voting system becomes functional.