When organizational models become stumbling blocks: Deep reflections on the governance changes of Zcash

Zcash (ZEC) has recently experienced a significant decline, but this is not due to technical failures or funding risks; rather, it is a “blood exchange” in governance structure. Key members of the core development team Electric Coin Company have announced their departure to establish a new entity, CashZ, revealing the common governance dilemmas faced by crypto projects.

Why did the core team choose to leave?

In their statement, ECC insiders used the legal term “Constructive Discharge,” which is not just a personnel change but a direct rejection of the existing governance framework. They believe that the current non-profit structure has become an obstacle that hampers the efficient operation of a professional team.

It is worth noting that these individuals have not abandoned Zcash itself. The newly formed CashZ will continue development based on the Zcash code, only changing the organizational form. This indicates that the core issue is not technical but purely about “how to organize manpower and how to operate.”

The triple dilemma of non-profit structures

As crypto projects move from pure technical ideals to practical applications, the pure non-profit model often becomes a bottleneck:

Rigid funding and incentives — Compared to flexible financing solutions in commercial companies, non-profit structures have limited sources of funds, making it difficult to offer market-aligned salaries and incentive mechanisms.

Decision-making inefficiency — Multi-layered approval processes slow down product iteration and market response speed. In the fiercely competitive crypto ecosystem, efficiency is life.

Regulatory compliance pressure — Under increasingly strict legal environments, non-profit organizations face heavier compliance burdens, often requiring substantial effort to handle uncertainties.

How does the market price this change?

According to the latest data, ZEC is currently priced at $407.84, with a 24-hour change of +5.81%. This volatility reflects market uncertainty and indicates that investors are watching—“Who will take responsibility next? How long will the governance vacuum last?”

In the short term, this uncertainty will inevitably exert downward pressure on prices. The market fears power vacuums and unclear direction most. But from a long-term perspective, if new business models can more efficiently promote application deployment and ecosystem development, this could instead become a necessary upgrade.

A larger industry warning

Zcash is not an isolated case. This event exposes a common problem in the crypto industry: many great technological visions are hindered by outdated organizational structures.

Bridging the gap from idea to reality requires more than just elegant code. It also needs a human organizational framework that keeps pace with the times and enables effective collaboration. The departure and restructuring of teams essentially represent a “choice” to pursue a more pragmatic path through action.

Projects that can evolve their governance structures in a timely manner and find operational methods that match their organization will go further. Those that rely solely on idealism will ultimately be ruthlessly filtered out by the market.