In a significant shift within the cryptocurrency sector, Electric Coin Company, the longtime developer of Zcash, has announced plans to create a new entity following a public governance dispute. This separation involved the entire team leaving their previous organizational structure to continue their mission focused on privacy, while the Zcash protocol remains unchanged.
Governance Conflicts Drive Company Split
At the core of the dispute lies Bootstrap, a nonprofit organization designed to support Zcash by overseeing Electric Coin Company. CEO Josh Swihart publicly indicated that a majority of Bootstrap’s board members had diverged from Zcash’s mission.
Swihart specifically mentioned individuals including Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai as key members of this majority. He noted that recent changes enforced by the board had altered the Electric Coin Company’s team members’ employment conditions.
According to Swihart, these adjustments made it unfeasible for the team to carry out their responsibilities effectively and with integrity. Consequently, the entire team departed following what Swihart termed a “constructive dismissal,” a situation where the work environment becomes intolerable.
This incident underscores the growing tension between mission-driven development teams and the governance structures of nonprofit organizations.
A New Company with a Familiar Mission
Despite the separation, Swihart emphasized that the departing team remains committed to their core vision. He confirmed that they plan to establish a new company with the objective of creating “uncompromising private money.”
This commitment reflects Zcash’s long-standing focus on privacy, censorship resistance, and user sovereignty. Importantly, Swihart and other key figures have clarified that the Zcash protocol itself is not impacted by these organizational changes. The Zcash codebase is open-source, meaning no one entity owns or controls the network, a critical point for users concerned about continuity and security.
Former CEO and Zcash founder Zooko Wilcox defended the actions taken by the Bootstrap board, asserting that Zcash remains permissionless, secure, and reliable. His response highlighted that leadership perspectives on the causes and implications of this division significantly differ.
Market Reaction and Zcash Price Decline
Following the announcement, ZEC, the native token of the Zcash network, experienced a notable price drop. As of writing, Zcash traded at approximately $443.38, down 10.3% in a single day, erasing much of its December gains.
This decline reflects uncertainty surrounding governance, leadership stability, and the future development trajectory. Meanwhile, supporters of the departing team argue that distancing themselves from what they view as hostile governance could ultimately enhance development efforts.
They see the creation of a new company as a way to protect mission-driven work from unwieldy nonprofit board dynamics. However, critics express concerns about fragmentation and disruptions in organizational continuity.
This episode draws attention to broader challenges faced by decentralized projects that rely on hybrid structures combining nonprofits, enterprises, and open-source communities.
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