Zcash Developer Electric Coin Co. Reveals Q1 Financial Loss

The for-profit arm supporting zcash has issued a new report saying it avoided layoffs throughout the bear market despite being in the red.

AccessTimeIconAug 30, 2019 at 12:25 p.m. UTC
Updated Sep 14, 2021 at 1:51 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Electric Coin Company (ECC), the for-profit company that supports the development of the zcash cryptocurrency has issued its Q3 transparency report, revealing it has so far avoided layoffs during the bear market despite financial losses.

According to the report, the company ran an average monthly deficit of 30 percent in Q1. The ECC took in $449,000 per month while expenses averaged $635,000.

In a July letter, EEC CEO and Zcash co-founder Zooko Wilcox said the company had successfully navigated the bear market, which saw multiple teams cut staff or close up shop entirely. According to the company’s profile on Linkedin, the ECC currently has 19 employees.

Launched in 2016 without an initial coin offering, new cryptocurrency created by the protocol has since been divided between miners, the Zcash Foundation, the ECC and certain founders as well as employees.

As of today's mining schedule, 80 percent of the block reward goes toward miners with the remainder dispersed as a "Founder's Reward."

At an average of $55 per coin, the ECC made $336,900 per month on block rewards alone in Q1. Expenses hit $525,000 for the company plus another $110,000 per month for employees over the same period.

Due to the deficit, the report states the ECC cut costs in numerous non-critical areas like PR, trademark protection and engineering. The ECC also approached Founder's Reward recipients to reallocate funds for the ECC in June.

As mentioned, the report comes a month after Wilcox’s open letter to the Zcash community. The development fund is set to run dry in October 2020, which would slash funding for the ECC. In the letter, Wilcox called for a new development fund for the company.

The ECC did not respond to questions for comment by press time.

Zooko Wilcox image via CoinDesk archives


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.