- Zcash faces rising tension as community members debate the risks of adopting token based governance.
- Concerns grow over privacy protection as large holders may gain more control under a token voting model.
- Sharp ZEC price swings increase pressure on Zcash governance as stakeholders assess long term stability.
Ethereum co-founder Vitalik Buterin has cautioned the Zcash community against the transition to token-weighted governance. His remarks came when Zcash stakeholders were still looking into the continuity of leadership, independence of committees, and the fluctuating market factors.
He argued that token voting could centralize influence among large holders and weaken long-term privacy protections. He also linked the model to short-term incentives that may undermine decisions that require durable commitments. His concerns added pressure to an already active debate about how Zcash should organize its decision-making framework.
Ongoing Governance Discussions Within the Community
The remarks followed recent statements from Zooko, who reflected on the evolution of Zcash’s governance system. He emphasized that the structure relies on independent participants who cooperate despite disagreements. He encouraged voters to review candidate positions carefully as the next election cycle approaches.
He made it clear that he would be competing again next year and he is now prepared to take the responsibility. He also stated that there are more questionable grant applications and the committee is likely to receive more of that. He pledged to continue rigorous scrutiny during funding reviews.
Zooko also referenced the recent increase in the price of ZEC. He described the rise as a new test for the community, since increased funding may lead to easier spending decisions. He stated that some developers still lack support for ongoing work and highlighted the importance of long-term involvement. He reaffirmed his support for protocol upgrades such as Crosslink, NSM, and ZSA, noting that the timing of changes must reflect the judgment of the broader community.
Committee Operations and External Reactions
According to Zooko, the Zcash Community Grants committee remains an independent five-member body. He outlined internal roles, citing organizational work and community engagement efforts carried out by committee members. His statements led to other responses by the great individuals in the community.
Naval Ravikant expressed his concerns on structural weaknesses in systems that are based on trusted intermediaries. Another member, Darklight, argued that on-chain systems remain exposed to issues such as dominant capital and voter apathy. He suggested that the committee still offers a form of quality control because automated systems cannot evaluate complex research decisions.
Broader Market Context Fuels the Debate
The government debate has been intensified as Zcash is gaining a resurgence in the market. Industry trackers data indicates that ZEC has appreciated over 1,000% in the last three months.
The token hit a recent high of $723 and then dropped. It is currently trading close to $448 following a sharp fall last week. Moreover, Zcash surged 6% after $100M Winklevoss treasury investment boosts market confidence. On November 29, Zcash traded at $466.04 following a 1.7% decline. The fast change of the price has caused a higher level of questioning the governance practices as the community members are evaluating the risks and benefits of possible structural changes.
