Zcash core team quits Electric Coin Company after governance clash with Bootstrap

Published: 2026-01-09 04:56:26 |

Electric Coin Company (ECC), the principal development team behind Zcash, has resigned from the nonprofit Bootstrap following a governance dispute. ECC CEO Josh Swihart said a board majority at Bootstrap created a “clear misalignment” with Zcash’s mission and changed employment terms, making it impossible for the team to operate with integrity. ECC plans to form a new company with the same developers and continue maintaining the Zcash protocol, which they say remains technically unaffected. Bootstrap disputes ECC’s account, saying the disagreement centers on legal and fiduciary concerns tied to a proposed transaction to privatize the Zashi wallet; the board warns certain deal structures could expose the nonprofit and donors to legal and political risk under US nonprofit law. Zcash founder Zooko Wilcox separated the organizational fight from network operations, reassuring users the open-source protocol is secure. The dispute has moved markets: ZEC experienced significant volatility after the departures were announced—initial drops of roughly 13–22% were reported as some traders feared developers were abandoning the protocol, followed by partial recoveries after ECC said the team would continue development and announced a new wallet project, CashZ. Derivatives positioning showed increased bullish exposure on platforms such as Binance. Key named figures include Josh Swihart (ECC), Zaki Manian, Christina Garman, Alan Fairless and Michelle Lai (Bootstrap board members), and Zooko Wilcox (Zcash founder). Primary keywords: Zcash, Electric Coin Company, Bootstrap, governance, ZEC. Secondary keywords: Zashi, CashZ, wallet privatization, developer exit, market reaction.

Bearish

Short-term: Bearish. The sudden departure of ECC from Bootstrap created immediate uncertainty about ongoing development, triggering sharp ZEC price drops (reported 13–22%) as traders briefly feared protocol abandonment. Volatility and liquidity fluctuations followed, amplified by speculative positioning in derivatives markets. Even though the protocol is open-source and other actors (including the departing team) say development will continue, uncertainty typically suppresses buying pressure and raises volatility for the native token in the near term. Long-term: Neutral-to-bearish risk. If the departing team successfully continues development under a new entity and community governance preserves protocol continuity, long-term technical risk to Zcash is limited and markets may recover. However, prolonged legal or organizational conflicts—especially around wallet privatization and nonprofit compliance—could harm adoption, partnerships, and institutional confidence, keeping downward pressure on price. The ultimate market direction depends on resolution speed, clarity about custody/wallet plans (Zashi/CashZ), and visible continuity of protocol maintenance.