ZCASH GOVERNANCE DISPUTE PROMPTS TEAM DEPARTURE AND PRICE SLUMP

• Zcash (ZEC) experienced a sharp price decline following the resignation of its core development team from Electric Coin Company (ECC) due to a governance dispute.
• The development team, led by former CEO Josh Swihart, has formed a new for-profit startup called cashZ to continue Zcash development under a more flexible organizational structure.
• The Zcash protocol and network remain fully operational, with no technical disruptions reported despite the leadership change.

The departure of the development team has raised concerns about the project's governance and future direction, particularly for institutional investors who had recently shown interest in Zcash.
Swihart described the situation as a constructive discharge, citing governance actions that altered employment terms and hindered the team's ability to advance Zcash's privacy mission.
While the Zcash Foundation did not respond to comment requests, Swihart emphasized the team's ongoing commitment to the project and their vision for scaling Zcash to a global user base.

The Zcash development team has launched a new wallet called cashZ, intended to provide a seamless transition for existing users while supporting faster development cycles.
This new wallet is built on the foundation of the Zashi wallet and will not issue a new token or change the Zcash network.
Swihart highlighted that the move is driven by the need for quicker decision-making and a return to Zcash's cypherpunk roots, which prioritize privacy as a fundamental financial tool.

What caused the Zcash development team to leave Electric Coin Company?

The development team left Electric Coin Company due to a governance dispute with the nonprofit board overseeing the organization, which led to changes in employment terms that the team found untenable.
These changes were described as a constructive discharge, a legal term indicating working conditions that effectively force employees to resign.
The board, referred to as "ZCAM" by Swihart, included members who were seen as steering the project away from its original vision of building private, censorship-resistant money.
This governance conflict created internal strain and ultimately led to the team's departure.

How has the Zcash price been affected by the leadership change?

Zcash's price has dropped significantly since the development team's departure, with ZEC falling more than 20% to $381, its weakest level in three weeks.
The price slump has been attributed to investor uncertainty surrounding the project's future and governance structure.
Despite the short-term volatility, the team has stated that the Zcash protocol itself is unaffected, and the focus remains on scaling the network.
Swihart has emphasized that the team's departure does not signal an end to Zcash development but rather a reorganization aimed at long-term sustainability.

What is the role of the new for-profit startup, cashZ?

The new company, cashZ, was formed to continue Zcash development under a for-profit structure that allows for greater flexibility and faster decision-making.
This move is intended to reduce the friction associated with nonprofit governance and align with the team's goal of scaling Zcash to billions of users.
The company has launched a new wallet called cashZ, which is built from the Zashi code and designed to support a seamless transition for existing users.
The team has also stated that they are not launching a new cryptocurrency or token sale, and the focus remains on improving the existing Zcash network.
Swihart has described the move as a return to the original cypherpunk values that shaped Zcash from its inception.

Overall, the Zcash project remains open source and decentralized, with multiple teams continuing development.
Investors are closely watching how this new structure will impact Zcash's long-term growth and adoption, particularly in light of increased institutional interest in privacy-focused assets.