Zcash internal divisions intensify, with the entire ECC team resigning and a new developer being established.
Electric Coin Company (ECC), the core developer of the privacy-focused cryptocurrency Zcash (ZEC), has left its non-profit foundation, Bootstrap. With internal governance conflicts reaching a breaking point, ECC announced it would establish a new, independent company to continue development.
ECC CEO Josh Swihart explained the background to the conflict via social media, saying, “Over the past few weeks, a majority of the Bootstrap board has moved in a direction that is clearly at odds with the mission of Zcash.” The problematic board members are Jacqui Manian, Christina Garman, Alan Fairless, and Michelle Lairo, whom Swihart collectively refers to as “ZCAM.”
Swainhart claimed the resignations were effectively forced dismissals. "Yesterday, the entire ECC team was 'compositionally dismissed' by ZCAM and left the organization," he said. "Our employment conditions have changed, and we are no longer able to faithfully perform our original duties."
The core reason for ECC's departure stemmed from disagreements over the new investment structure and legal response implemented by some organizations within the Zcash ecosystem. Bootstrap stated that it needed to comply with its legal obligations under US nonprofit law while discussing attracting third-party investment or converting to a private company. However, ECC opposed this, stating that it was a "malicious structure" that could destabilize the entire ecosystem.
ECC establishes new company… "Zcash development continues, protocol remains stable"
ECC announced that it would establish a new company to continue development on Zcash. "We're starting over with the same team and the same mission," Swainhart said. "Our mission to create an unstoppable privacy currency remains unchanged."
Zcash founder Zooko Wilcox attempted to distance himself from the conflict. "This issue has nothing to do with Shielded Labs or me," he said. "The Zcash network is open-source, permissionless, secure, and private, and this conflict cannot impact the network itself."
He also reiterated his trust in the board members mentioned by Swainhart, saying, “I have been working with them through difficult and complex situations for over 10 years, and I believe they are people of high moral character.”
Bootstrap: "Structure is the core of the debate, and the mission is shared."
Following the ECC's announcement, the Bootstrap board also issued a statement clarifying their position. They explained, "This incident is not a matter of disagreement over Zcash's mission, but rather a matter of structural issues and legal constraints." They added, "We are currently discussing, after consulting with legal counsel, the potential privatization of Zcash assets."
In particular, the board warned that the structure proposed by the ECC could pose legal and political risks in the future, potentially leading to lawsuits from donors or the return of Zashi assets. The board concluded that this could threaten the viability of the entire Zcash ecosystem.
The board emphasized that “this issue is not about Zcash’s mission, but rather about our operating principles and ethical obligations as a 501(c)(3) non-profit organization,” and that “Bootstrap’s assets should be used for their intended purpose.”
ZEC price plunges, fueling market concerns.
As the conflict became public, the price of Zcash also took a hit. As of press time, ZEC was trading at $408.57 (approximately 594,446 won), a plunge of nearly 13% in a single day, reflecting investor anxiety.
The Zcash development team is divided, raising concerns about the stability and sustainability of the ZEC ecosystem. However, given that the protocol itself remains unaffected, there's a possibility that a transition to a new system will occur after a short period of disruption. Either way, this incident will likely be remembered as a major turning point, exposing the limitations of the Zcash governance system.
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TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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