The entire team at Electric Coin Company (ECC) — the primary organization responsible for developing and maintaining Zcash ($ZEC) — collectively resigned due to a severe governance dispute with the overseeing nonprofit, Bootstrap (a 501(c)(3) entity created to govern ECC and support the Zcash ecosystem).
Former ECC CEO Josh Swihart described the situation as a “constructive discharge,” alleging that a majority of the Bootstrap board specifically members Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai engaged in actions misaligned with Zcash’s mission of building privacy-preserving digital money.
These actions reportedly altered employment terms, making it impossible for the team to continue effectively. The team plans to form a new independent company to continue advancing privacy-focused technology, potentially still tied to Zcash’s goals described as “unstoppable private money”.
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The Zcash protocol itself remains unaffected: it’s open-source, permissionless, and continues to operate normally. No immediate risks to network security, transactions, or user funds have been reported. Founder Zooko Wilcox also reassured the community that the blockchain is secure and private regardless of organizational drama.
This comes after a strong 2025 for ZEC surging over 800% in some reports, peaking above $600-$700 but amid ongoing challenges like regulatory scrutiny on privacy coins.
Market Impact
ZEC price reaction: Sharp sell-off, with drops reported between 7-20% in the first 24 hours varying by source and timeframe. As of reports it’s trading around $400-$460, down significantly from recent highs near $500+. Some sources note year-to-date 2026 declines around 18%, exacerbated by this event.
This highlights governance risks in hybrid nonprofit/corporate crypto structures. Possible outcomes include: Continued development via the new company. Community-driven maintenance. Or a potential hard fork if rifts deepen. The situation is still unfolding, with uncertainty around future funding, upgrades, and roadmap coordination. Privacy coins like ZEC remain volatile due to such internal and external pressures.
Zcash (ZEC) is a cryptocurrency designed with optional privacy as its core feature, making it distinct from fully transparent blockchains like Bitcoin. It uses advanced zero-knowledge cryptography to allow users to choose between private (“shielded”) and public (“transparent”) transactions.
Zcash employs zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) initially, and now primarily the Halo 2 proving system introduced with the Orchard protocol in 2022 via Network Upgrade 5.
These proofs allow the network to verify that a transaction is valid no double-spending, correct amounts without revealing the sender, receiver, or amount. With Halo 2, Zcash eliminated the need for a “trusted setup” a ceremonial process in earlier versions that carried theoretical risks, making the system more secure and trustless.
Zcash has two main types of addresses and value pools. t-addresses (start with “t”). Sender, receiver, amount fully public (like Bitcoin). Compliance, audits, exchanges, z-addresses (older) or Unified Addresses (modern, supporting multiple pools). Sender, receiver, amount hidden. High (fully private if both sides shielded). Everyday private payments, personal security.
Fully shielded transactions— shielded to shielded: Completely private – only the existence of a transaction is visible on the blockchain. Mixed transactions like transparent to shielded: Partially private hides the shielded side.
Coins move between transparent and shielded pools. As of late 2025, about 30% of ZEC supply is shielded, with the majority in the modern Orchard pool. Zcash has upgraded its privacy protocols over time for better efficiency, security, and usability: Sprout (2016 launch): First shielded pool, used zk-SNARKs with trusted setup.
Sapling (2018): Faster proofs, mobile-friendly, larger anonymity sets. Orchard (2022, current default): Uses Halo 2, no trusted setup, supports recursive proofs for future scalability, unified addresses, and “shielded by default” in many wallets.
Encrypted memos: Attach private messages e.g., notes or invoices to shielded transactions – visible only to the recipient. Optional selective disclosure – share a key to reveal specific transaction details for audits, taxes, or trusted parties without exposing everything.
Unified addresses (post-2022): Single address that bundles transparent and shielded options, simplifying UX while prioritizing privacy. Many modern wallets, like Zashi, ECC’s official automatically move funds to shielded pools for better default privacy.
Strongest when fully shielded: Provides anonymity comparable to cash – transactions are untraceable on-chain. Optional nature: Allows regulatory compliance, exchanges often use transparent addresses, distinguishing it from always-private coins like Monero.
Privacy improves with more users shielding funds, larger pool hides individual transactions better. Ideal for personal financial privacy, donations, or sensitive payments, while still supporting transparency when needed.
Zcash remains one of the most advanced privacy coins, balancing strong cryptographic privacy with flexibility. For the best privacy, use shielded addresses exclusively and modern wallets supporting Orchard/Unified Addresses.