ZCASH Developers Leave ECC, Form CashZ to Continue Privacy-Focused Development

• Zcash (ZEC) developers resigned en masse from Electric Coin Company (ECC) after disputes with the nonprofit board, forming a new for-profit startup, cashZ, to continue development according to reports.
• The move is attributed to a "constructive discharge," with developers claiming changes to employment terms made working conditions untenable and misaligned with Zcash's privacy mission as reported.
• The Zcash protocol remains fully operational with no technical disruptions, but governance and development uncertainty has raised investor concerns and impacted market sentiment according to analysis.

The resignation of the core development team at Electric Coin Company (ECC) highlights deep governance tensions between the board and developers. According to ECC CEO Josh Swihart, the team described their exit as a case of constructive discharge due to changes in working conditions that undermined their ability to advance Zcash's privacy-focused roadmap according to CEO statements. The developers have regrouped under a new entity, cashZ, which operates independently to continue building Zcash technology as detailed in reports.

This transition was triggered by a conflict between the development team and the Bootstrap nonprofit board, which oversees ECC. The board reportedly implemented changes that the developers argued compromised their autonomy and mission alignment according to analysis. While the Zcash codebase and network remain unaffected, the departure of key developers has raised questions about future upgrades and governance structures.

What Caused the ECC Developers to Leave?

The core issue revolved around governance and working conditions. ECC leadership described the situation as a constructive discharge, indicating that board decisions created an environment that made continued collaboration impossible according to reports. The dispute escalated after an earlier restructuring announced in December 2025, which already strained internal dynamics as reported.

The ECC team accused the board of steering the project away from its original vision of building private, censorship-resistant money. This led to a structural break, with developers forming a new company to maintain Zcash's mission independently according to reports. The new for-profit structure aims to reduce friction and enable faster development decisions, free from nonprofit constraints as stated.

What Is the Implication for Zcash's Future?

Despite the split, Zcash's open-source protocol remains unaffected. Zcash founder Zooko Wilcox affirmed that the network remains secure and operational according to reports. The new company, cashZ, has already launched a new privacy wallet, CASHZ, to support Zcash users and continue development according to reports.

The transition marks a significant shift in how Zcash will be developed and governed. While the team insists they are not abandoning the protocol, the move has raised concerns about fragmentation and the potential for competing wallets or development paths as reported. Market participants remain divided, with some seeing this as a positive step toward decentralization and others fearing instability.

How Did the Market React?

The market reacted swiftly to the news. ZEC prices dropped as much as 26% in the wake of the announcement, reflecting investor uncertainty and governance concerns according to reports. The sell-off highlighted vulnerabilities in centralized governance models, particularly in privacy-focused projects like Zcash as detailed.

Despite the short-term volatility, the broader privacy coin segment has shown mixed signals. Some projects have gained traction, while others, like Zcash, face challenges related to governance and regulatory scrutiny according to analysis. The situation underscores the importance of governance resilience and sustainable funding models in long-term protocol success as reported.

While the Zcash ecosystem remains decentralized and functional, the governance crisis has exposed structural weaknesses that need addressing to maintain investor confidence and adoption according to reports.