Core Zcash engineers have resigned and they plan on forming a new company; prices fell sharply, governance now in question.

On January 7–8, 2026, Electric Coin Company’s core developers resigned following a governance clash with Bootstrap’s board. 

The team publicly stated they will form a new company to continue Zcash development, and markets reacted with an immediate sell-off that pushed ZEC significantly lower across exchanges.

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Here Is What Happened

Electric Coin Company announced the collective exit after weeks of escalating conflict with Bootstrap’s board.

On January 7, CEO Josh Swihart posted that the board changed employment terms and effectively forced the staff out, calling it constructive discharge. 

Multiple core engineers left ECC the same day and said they planned to set up a new, independent company to keep building Zcash’s privacy tools. 

Bootstrap and ECC issued brief statements acknowledging the departures, and both sides have traded sharp public posts while details of the split remain under discussion.

Named team members posted on X publicly. 

So, Why Did Zcash Developers Quit?

Developers said Bootstrap’s board altered employment terms and sought structural changes that conflicted with the team’s mission for private digital money.

They accused the board of taking steps that would limit the team’s independence and slow product work. 

Swihart and other senior engineers framed the exit as necessary to preserve technical direction and user privacy commitments.

They said the new company will use clearer governance, funding and a roadmap for protocol upgrades. 

Bootstrap has contested some claims, saying the board aimed to secure sustainability and oversight; those statements remain disputed. 

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Market And Network Impact

ZEC fell across exchanges, with reported declines ranging from 7% to 20% as traders reacted to the news.

The open-source protocol continues to run, so nodes and miners face no immediate technical interruption. 

Investors now face roadmap uncertainty and potential liquidity risk; monitor the new company’s plan, Bootstrap’s formal reply and any community governance actions.

Monitor exchange listing moves. 

Conclusion

The developers’ exit shifts Zcash’s governance risk from theory to reality.

Expect volatility and contested narratives until the new company and Bootstrap publish formal roadmaps and timelines for rebuilding trust. 

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