Zcash core team departs to create the innovative wallet "CashZ," calling for a return to cryptopunk principles and decentralized scaling

Zcash core development team collectively leaves, establishes CashZ wallet using old code, leading to a fierce clash between old and new governance models, causing ZEC price to plummet and sparking debate over the survival of privacy coins
(Background summary: Zcash core team “all leave”! ECC and non-profit organization Bootstrap clash over governance, ZEC drops 20%)
(Additional context: Arkham exposes Zcash’s “privacy nakedness,” so why are Wall Street funds actually breathing a sigh of relief?)

The leading privacy coin Zcash has recently experienced a shockingly large resignation wave. Former engineers and management members who supported Electric Coin Company (ECC) suddenly submitted their resignations collectively from late night January 7 to early morning January 8, transitioning to the startup CashZ. This “migration” openly exposes the structural conflict between the non-profit organization Bootstrap and the for-profit company.

Governance cracks erupt again

The trigger was Bootstrap’s board adjusting employment terms. The departing team regarded this move as “malicious governance,” effectively a form of wrongful termination. Former CEO Josh Swihart bluntly stated:

“Non-profit organizations focus on compliance, while startups focus on innovation.”

ECC has been responsible for Zcash’s core code for years, but under the foundation’s procedures, they often had to repeatedly submit budgets and compliance reports, lengthening development cycles. When the Trump administration relaxed business restrictions on one hand and strengthened financial regulation on the other, the team believed the original framework could no longer support “unstoppable privacy.”

The day after resigning, the team quickly registered CashZ and announced they would inherit the Zashi wallet code from ECC, launching a new version called “cashZ.” Existing Zashi users can directly import seed phrases, making migration painless. CashZ emphasizes that no new tokens will be issued, and all resources will be 100% dedicated to the ZEC ecosystem. According to CashZ’s official website, within just a few hours of opening reservations, over 3,800 registrations flooded in, showing strong community anticipation for a “return to Cypherpunk principles.”

Price plunges, market re-evaluates

After the news broke, ZEC once dropped 21%, falling below $400; the next morning it recovered to around $430, still far below the $3,191 high in March 2016. The protocol continues to be maintained by global miners, and consensus security remains unaffected, but investors are concerned about how the remaining development fund will be allocated and who will review future proposals. Observers note that this split is like Zcash’s overdue “coming of age”: as privacy technology demands a faster pace, ideals and efficiency will inevitably be re-prioritized.

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) already have hundreds of millions of users. To maintain differentiation, Zcash only has the “default privacy” route left. CashZ chooses a profit-oriented model, aiming to attract external capital and accelerate decision-making; Bootstrap retains the trademark and continues funding research, advocating for steady compliance. Both sides will battle on two fronts: “funding momentum” and “community trust,” with the outcome yet to be determined over time.

For holders, the collective departure brings short-term pain but may also be the last chance to break free from bureaucracy and further realize “privacy like cash.” Moving forward, whether CashZ can deliver a product within weeks and whether Bootstrap will propose new development incentives will determine if Zcash’s cryptopunk bloodline can continue.