• Zcash Foundation reported $36.7 million in liquid assets, with monthly operating expenses averaging $272,539 during the first quarter.
• Development progressed across Zebra, Z3 stack, and NU7, while the network remained stable despite ecosystem transitions and leadership changes.
• ZEC is up 3.4% following the Q1 report.

The Zcash Foundation (ZF) reported net liquid assets of approximately $36.7 million as of March 31, according to its Q1 report released Tuesday. The Foundation also recorded average monthly operating expenses of about $272,539, with personnel costs accounting for the largest share.

“In just three months, we navigated ecosystem-wide transitions, achieved major regulatory clarity, shipped critical infrastructure, advanced protocol governance, and laid the technical groundwork for Network Upgrade 7,” wrote Executive Director Alex Bornstein in the executive summary.

Zcash Foundation strengthens position amid ongoing protocol development

The report highlights a quarter marked by regulatory clarity, infrastructure development, and operational resilience. The Foundation reiterated its commitment to advancing financial privacy as Zcash continues to gain traction within the privacy-focused crypto sector.

“This quarter proved what decentralization is supposed to deliver: continuity through change, resilience through distribution, and progress through community,” the report stated.

A key development during the period was the US Securities and Exchange Commission (SEC) ending its investigation of the non-profit without an enforcement action. The probe, initiated by a subpoena in August 2023, had been a source of uncertainty for the Foundation and its ecosystem.

The report also underscored the resilience of the Zcash network during a period of internal change. Following governance disputes and team departures at Electric Coin Company (ECC), the Foundation reaffirmed that the protocol remains decentralized and not controlled by any single entity. 

Network operations continued uninterrupted, with block production stable and user funds secure.

On the technical side, ZF detailed progress across its core infrastructure. Multiple Zebra node updates were released, including version 4.0.0, which introduced enhanced observability, and version 4.3.0, which addressed two security vulnerabilities and implemented initial ZIP-235 changes.

Development also advanced on the Z3 stack, FROST v3 for multi-party signing, and preparations for Network Upgrade 7 (NU7). The Foundation also deployed new Rust-based DNS seeders in the United States and Europe following the shutdown of ECC-operated seeders.

Community engagement remained active, highlighted by Zcomm 2026, a full-day virtual event featuring contributors and partners such as Web3Privacy Now and Aztec. Sentiment polling on NU7 proposals showed strong alignment, with initiatives such as Project Tachyon and Orchard Quantum Recoverability receiving more than 90% support.

Looking ahead, the Foundation outlined priorities for the second quarter, including advancing NU7, further developing the Z3 stack, and continuing Zebra benchmarking. It also announced the appointment of Scott Onder to its board, bringing additional expertise in fintech and impact investing.

Zcash has continued to lead within the privacy-focused crypto segment, benefiting from renewed interest in shielded transactions and privacy-preserving technologies. The token saw strong gains during a recent sector rally and has since traded within the $500–$600 range amid broader market conditions.

ZEC is trading above $580, up 3.4% on the day after the Q1 report.