Zcash weathers a governance rupture as price recovers Zcash’s native token (ZEC) steadied after an early sell-off triggered by a high-profile governance dispute that led Electric Coin Company (ECC) — one of the protocol’s principal developer teams — to break ties with Bootstrap, the nonprofit that governs the network. What happened - ECC CEO Josh Swihart said the Bootstrap board had moved into a “clear misalignment” with Zcash’s mission and made it impossible for ECC to work “effectively and with integrity.” He announced the team will form a new company, stressing that “the Zcash protocol is unaffected” and framing the split as a move to “protect our team’s work from malicious governance actions.” - Bootstrap pushed back, arguing the disagreement is rooted in legal and compliance constraints rather than mission drift. The board singled out plans to privatize the Zcash-based Zashi wallet via alternative structures, warning that as a nonprofit it could face donor-driven lawsuits if it endorsed such a move. “Good intentions do not satisfy legal requirements, and urgency does not excuse a flawed process,” the board said, adding that a rushed restructuring could damage trust in the protocol and set back privacy and financial freedom goals. New product, new structure - Within hours of the split, Josh Swihart — referred to in later posts as the former ECC CEO — unveiled CashZ, a new Zcash wallet aimed at scaling the protocol toward mass adoption. Swihart’s announcement reinforced the message that the development effort will continue outside Bootstrap’s governance framework. Market and community reaction - The market initially reacted sharply: ZEC tumbled about 22%, falling from roughly $490 to a low near $381 as some traders misinterpreted the news as developers abandoning the protocol. - The sell-off proved temporary. After the team’s new wallet announcement and renewed assurances that protocol development will continue, ZEC rebounded roughly 10% from the intraday low to trade near $438 at press time (source: TradingView). - Community sentiment on major exchanges shifted as well — bullish positions on ZEC rose to around 61% on Binance at the time of reporting. Outside perspectives - Haseeb Qureshi, managing partner at Dragonfly, praised the departing team as “true believers” and said projects driven by conviction tend to survive market turbulence. His remarks underscore a broader view among parts of the crypto community that developer commitment can outlast organizational turmoil. What this means - Technically, developers insist the Zcash protocol itself remains intact and operational. The core issue is organizational: how development should be governed and whether certain commercialization moves (like privatizing a wallet product) can be pursued under nonprofit constraints. - The episode highlights a recurring tension in crypto between mission-driven nonprofit stewardship and teams seeking flexible corporate structures to build and monetize products. Disclaimer This coverage is informational and not investment advice. Cryptocurrency trading carries high risk; conduct your own research before making decisions. Sources: posts from Josh Swihart/X, Bootstrap statements, TradingView price data, community commentary. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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