Governance Crisis Unveiled: Why the Zcash Team Walked Away
The sudden departure of Zcash’s core developers has sent shockwaves through the crypto space. According to Bootstrap, the nonprofit backing the project, the split wasn’t driven by technical disagreements but by legal constraints tied to fundraising under U.S. nonprofit regulations.
The Funding Dilemma Within Legal Boundaries
As a nonprofit, Bootstrap faces strict limitations on accepting external investment or pursuing privatization. These legal barriers made it difficult to secure long-term funding, creating friction over governance and resource allocation—ultimately prompting the team’s exit.
Exploring Viable Alternatives
Discussions are now underway to design alternative structures that comply with federal law while supporting sustainable development. Legal experts are involved to ensure any new model preserves decentralization, aligns with Zcash’s original vision, and protects community interests.
- Compliance remains the top priority in restructuring
- New frameworks must uphold open governance
- Development roadmap continues with transparency
While leadership changes have caused short-term uncertainty, the protocol remains operational. The community now looks ahead, hoping for a compliant and resilient path forward.