Major upheaval hit the Zcash ecosystem on January 7, 2026, as the ECC team announced a mass resignation amid escalating board tensions. Josh Swihart cited constructive discharge, describing workplace conditions that made continued operations untenable. The departures triggered immediate uncertainty around project governance and future direction.

The team signaled plans to explore a new entity focused on advancing private money infrastructure, though specifics remain vague. While the Zcash protocol itself continues functioning independently, critical questions linger: funding sources, development roadmap, and governance structure all face unpredictable waters ahead.

Market sentiment turned bearish fast. ZEC tokens plummeted 13–20%, dropping from $480 as traders digested the leadership vacuum and governance chaos. The selloff reflects broader concerns about execution risk and ecosystem stability when core teams fracture.