Zcash Developer Team Resigns Over Governance Disputes

The core development team behind Zcash, including the Electric Coin Company (ECC), resigned en masse on January 7 due to governance disputes with Bootstrap, the nonprofit overseeing the project.

The resignation was described by former ECC CEO Josh Swihart as a case of 'constructive discharge,' reflecting structural and philosophical conflicts over governance and operational independence.

The ECC team plans to form a new company to continue their work on Zcash's privacy-focused mission, emphasizing that the governance issue does not affect the protocol's security or operation.

The resignation comes amid broader governance tensions that have long defined the Zcash ecosystem. The Electric Coin Company played a central role in development, funding, and long-term research, raising concerns about how the project will realign its structure and maintain continuity.

The Bootstrap board, which includes Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (collectively referred to as ZCAM), has not issued a public statement regarding the resignation.

The dispute highlights the ongoing debate in the cryptocurrency space about decentralization and corporate governance. Zcash's protocol remains open source, secure, and permissionless, but the leadership shift introduces uncertainty about the future direction of the project.

The situation also brings attention to the structural weaknesses in governance models for privacy-focused cryptocurrencies.

What Happened

The Electric Coin Company team resigned en masse on January 7, claiming that Bootstrap had made working conditions objectively intolerable. The team described the situation as a constructive discharge, where changes in governance and employment terms forced them to resign.

The team cited governance misalignment rather than technical disagreements as the core of the issue. Former CEO Josh Swihart accused the board of acting in ways that hindered their ability to fulfill Zcash's mission of privacy-focused money.

The Electric Coin Company team plans to form a new company to continue Zcash development. The Zcash founder, Zooko Wilcox, has affirmed that the protocol remains secure and independent, but has not taken a public side in the dispute.

What This Means for Zcash's Governance Model

The resignation underscores long-standing structural tensions in the Zcash ecosystem. The governance model has historically attempted to balance decentralization with organized development, but the recent crisis highlights the risks of relying on a small group for leadership and funding.

Zcash's protocol is open source, so its operation is not directly impacted by the team's departure. However, the ECC team has played a central role in development, raising questions about how the new team will coordinate with Bootstrap, the Zcash Foundation, and the broader community.

The situation reflects broader challenges in decentralized ecosystems, where governance conflicts can lead to fragmentation and uncertainty.