Zcash (ZEC) Core Development Team Resigns Amid Governance Dispute

The core development team behind Zcash (ZEC), the Electric Coin Company (ECC), resigned en masse, citing constructive discharge by Bootstrap, the nonprofit governing ECC.

• The team plans to form a new company to continue building privacy-preserving digital money, emphasizing that the Zcash protocol remains unaffected.

• Zcash founder Zooko Wilcox confirmed that the protocol is open source, secure, and permissionless, unaffected by the governance dispute.

The resignation highlights governance challenges in hybrid nonprofit-corporate structures in the cryptocurrency space, raising concerns about development continuity.

Zcash has seen significant price volatility recently, with ZEC dropping nearly 18% year-to-date amid broader market headwinds and regulatory scrutiny of privacy coins.

The situation has triggered a reevaluation of governance frameworks in the Zcash ecosystem and broader implications for privacy-centric assets.

What Caused the Zcash Team's Resignation?

Electric Coin Company's CEO, Josh Swihart, described the team's departure as constructive discharge, citing intolerable working conditions imposed by a majority of the Bootstrap board.

Swihart alleged that board members altered employment terms in ways that made it impossible to continue development.

The Zcash development team emphasized that the protocol remains unaffected, but the governance dispute has raised questions about the long-term sustainability of Zcash's structure.

What Are the Implications for Zcash and the Market?

The resignation has led to a sharp drop in ZEC's price, with the token falling over 7% in the immediate aftermath of the news.

Zcash's governance crisis has coincided with broader challenges in the market for privacy-focused cryptocurrencies, including regulatory pressure and reduced institutional adoption.

Market participants are watching closely to see how Zcash's new company structure will align with the broader community and whether governance clarity can be restored.

What Next for Zcash's Governance and Development?

The new company formed by the departing developers aims to continue Zcash's technical roadmap and mission.

Bootstrap and the Zcash Foundation are expected to reassess how protocol development is funded and coordinated in the future.

The Rome Dev Summit in May 2026 is positioned as a key event for aligning the community and addressing governance challenges.

Are Privacy Coins at Greater Risk of Governance Disruptions?

This governance crisis in Zcash reflects a broader trend of challenges in balancing decentralization with structured development in privacy-focused projects.

The incident underscores the importance of governance alignment for institutional adoption and investor confidence.

Privacy coins face unique regulatory scrutiny, adding another layer of complexity to governance and development continuity.