Bootstrap Board Split For Non-Profit Law, Zcash Wallet Investment

Bootstrap, the nonprofit supporting Zcash, explained that a recent governance dispute leading to key board member departures was due to the legal constraints nonprofits face when seeking external investment. This followed the Electric Coin Company (ECC), the main Zcash developer, separating from Bootstrap, citing "malicious governance actions." Bootstrap clarified that the disagreement centered on discussions about external investment and alternative structures to privatize Zashi, the self-custodial wallet, while ensuring compliance with U.S. nonprofit law. The board expressed concern that privatization efforts could introduce "new vulnerabilities for politically-motivated attacks on Zcash" and jeopardize the ecosystem if assets were captured for private benefit rather than serving the public good. Despite acknowledging that the nonprofit structure limits access to capital, Bootstrap noted that for-profit structures could effectively attract significant external funding for Zcash development. Following the news, the ZEC token experienced a price drop, though large holders reportedly increased their exposure.

(Source：Cointelegraph)