Vitalik Warns Against Token Voting as Zcash Community Splits; ZEC Price Under Pressure
Vitalik Buterin publicly warned the Zcash community against adopting token-based (on-chain) governance, arguing that leaving privacy policy to average token holders risks eroding Zcash’s core privacy guarantees. The debate intensified after a proposal from community member Artkor advocated for no changes to the Zcash Governance Community (ZCG). The community is split between maintaining the current governance model and moving toward on-chain governance. Traders are watching closely: ZEC rallied earlier in the privacy-altcoin season, peaking near $750 in early November, but has since pulled back and faces critical support levels around $450 and $379. Analysts in the article flag lower highs and lower lows, saying a drop below $427–$379 could trigger intensified selling and a full reversal from the recent peak. The discussion includes potential market flows to privacy-focused rivals like Monero if investors flee over perceived governance threats. The article notes negative sentiment has already impacted ZEC’s price and warns investors to do their own research; it is not investment advice.
Bearish
The news is bearish for ZEC for several reasons. Vitalik Buterin’s high-profile warning against token-based governance increases uncertainty about Zcash’s direction; governance uncertainty often triggers capital flight in crypto, especially for assets where a core feature (privacy) might be compromised. The article shows ZEC has already formed lower highs and lower lows after a November peak near $750 and is trading near key supports ($450, $427, $379). Technical levels cited imply potential cascade selling if supports break—typical in thinly traded altcoins during governance crises. Additionally, the possibility of funds rotating to privacy alternatives like Monero increases competitive downside pressure. Historically, governance disputes (e.g., contentious hard forks, token-voting controversies) have produced short- to medium-term bearish pressure due to investor risk-off behavior; long-term impact depends on final governance outcome and community cohesion. Short-term traders should watch support breaks for short opportunities or to manage risk; long-term holders face protocol risk tied to governance changes and privacy feature trajectory.