Zcash Team Resigns Over Governance Disputes, Sparking Market Uncertainty

• Zcash's Electric Coin Company (ECC) team resigned en masse following governance disputes with the Bootstrap board.
• The resignation triggered an over 10–20% price drop in Zcash (ZEC) within 24 hours.
• ECC plans to form a new entity to continue its work on 'unstoppable private money' and Zcash-related development.

Electric Coin Company's full staff resigned after a governance dispute with the Bootstrap board, citing a misalignment in priorities and operational challenges. The team, led by former CEO Josh Swihart, described the exit as a constructive discharge, where the board's actions made continued collaboration unfeasible. This development followed restructuring efforts and discussions around the privatization of the Zashi mobile wallet, which the team viewed as a threat to the project's decentralized governance.

The resignation led to an immediate sell-off, with Zcash's price dropping over 10–18% within 24 hours. Market participants expressed concerns over the project's long-term stability and the potential impact on key upgrades, including the Halo 2 protocol. The Zcash Foundation has publicly emphasized the network's independence and resilience, stating that the protocol operates without reliance on a single entity.

Despite these assurances, development activity on the Zcash network has reached its lowest level since 2021, according to on-chain data from Santiment. The ECC team, comprising around 25 members including Josh Swihart and Chelsea Komlo, left the project on January 7, 2026. The Zcash Foundation urged the community to differentiate between organizational shifts and the ongoing functionality of the Zcash network, reiterating its commitment to decentralized governance.

Will Zcash Continue to Evolve Without Its Core Team?

The departure of Electric Coin Company raises questions about the project's ability to deliver key upgrades and maintain its roadmap. ECC emphasized that the Zcash protocol remains unaffected by the organizational changes and continues to operate as an open-source, decentralized network. However, the loss of core developers may slow down the execution of future enhancements, including Halo 2, a Trustless ZK proof upgrade.

The Zcash Foundation has reiterated that no single entity controls the network and that Zcash was designed to operate independently. Nevertheless, the departure of ECC has introduced uncertainty regarding who will take over the stewardship of critical updates and community engagement.

What's Next for Zcash's Price and Governance?

Zcash's price has dropped significantly following the announcement, reflecting investor concerns about governance and leadership stability. Despite this, the Zcash Foundation has defended the network's resilience and emphasized its independence from any third-party control.

Electric Coin Company is forming a new company to continue its mission-driven development. The team has already announced the launch of CashZ, a new wallet aimed at scaling Zcash adoption. This initiative has received support from prominent figures such as Balaji Srinivasan, who emphasized the importance of scaling for Zcash's long-term success.

Zcash's price remains under pressure, with analysts noting the potential for further volatility in the short term. Investors are closely watching whether the new company will be able to maintain momentum in the project's development and address governance concerns moving forward.

Can Zcash Maintain Its Relevance in the Privacy Coin Space?

The Zcash Foundation has maintained that the network continues to run smoothly and that there is no disruption to block production or user activity. However, the loss of a significant portion of its development team has raised concerns about the project's long-term relevance in the privacy coin space.

With declining block rewards and funding pressures already posing challenges, the governance dispute adds another layer of uncertainty. While the Zcash Foundation has reaffirmed its commitment to decentralized governance, the market remains skeptical about the project's ability to execute its roadmap without the support of its core team.

The future of Zcash will depend on the ability of the new entity to maintain development momentum and address concerns about governance. Until then, the project faces significant headwinds that could impact its position in the broader crypto market.