Zcash Sees Developer Slowdown As Zec Extends Two-month Slide

Zcash developer activity has fallen to its lowest level since 2021 as a governance dispute weighs on sentiment and ZEC extends a two-month decline.

Data from market intelligence firm Santiment shared in a Thursday X post shows that developer activity tied to Zcash dropped to its weakest level since November 2021. Over the same period, the Zcash (ZEC) token has fallen about 40% over the past two months.

“Historically, rising development activity leads to standout altcoins being able to emerge above the pack. The opposite result holds true for those that ‘let off the gas’ and decline in their efforts to consistently innovate and improve,” said Santiment.

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The slowing developer activity comes amid an ongoing governance dispute between the Electric Coin Company, the main development team behind Zcash, and Bootstrap, the non-profit supporting the protocol.

The Electric Coin Company recently said it would separate from Bootstrap and form a new company, citing what it described as “malicious governance actions,” Cointelegraph reported Thursday.

In its official response, Bootstrap said the board members engaged in discussions regarding “external investment and alternative structures to privatize” Zashi, the self-custodial crypto wallet built for private Zcash transactions.

On Thursday, the ECC developers announced that they are working on a new wallet, cashZ, which is set to launch in a “few weeks.”

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“This structure ensures that changes within a single organization or across many of them, while meaningful, do not compromise the integrity or continuity of the Zcash blockchain,” wrote the foundation in the response published on Thursday.

Source: CoinTelegraph