Ethereum co-founder Vitalik Buterin has publicly warned the Zcash community against adopting token-based governance, emphasizing that this model could severely undermine the project's core mission of protecting privacy. In a direct message on X on November 30, 2025, Buterin stated that token-holder voting is worse than Zcash's current consensus-based governance, arguing it fails to protect minority interests, is easily influenced by whales, and creates incentives misaligned with privacy-focused ecosystems.
ZEC price has been trending lower, with TradingView data showing a sustained decline from above $520 to around $447 over the past week, reflecting cooling market sentiment and modest trading volumes. Buterin highlighted that privacy is particularly vulnerable under token-based governance, as decisions by the median token holder risk eroding long-term privacy integrity through majority-rule choices.
The warning comes as Zcash faces governance uncertainty, struggling with user adoption and exchange liquidity. Buterin's comments may influence upcoming community discussions, potentially slowing or halting any shift toward token voting, and could shape market sentiment for weeks.
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