Zcash recouped losses this weekend after its founder, Zooko Wilcox, unveiled a proposal for an upgrade aimed at restoring faith in the digital asset’s scarcity.
Because of Zcash’s privacy features, the group noted at the time that it was impossible—using only cryptography—to determine whether the vulnerability was exploited, but the proposal introduced on Friday details changes for an "Ironwood" upgrade that could alleviate those concerns.
The token’s tumble weighed on other privacy coins, including NEAR Protocol, which rallied more than 8% to $2.15 over a 24-hour period. Meanwhile, Zcash rose 6% to about $445.
The Ironwood upgrade focuses on creating a new place for users to maintain their Zcash in shielded form, placing restrictions on transactions that could involve counterfeit coins, and using techniques such as AI-assisted security auditing to strengthen Zcash’s codebase.
Wilcox’s post noted that the upgrade’s timeline isn’t concrete, with a better understanding expected “as implementation plans mature and discussions continue.” The post underscored confidence that the vulnerability was never exploited.
Shielded Labs’ work involves the Zcash Foundation, Tachyon Group, Valar Group, and the Zcash Open Development Lab, according to the post. Not long after the proposal was floated, some of the privacy coin’s biggest advocates lauded the upgrade.
“I’m extremely bullish,” Mert Mumtaz, CEO and co-founder of Solana infrastructure firm Helius Labs, told Decrypt, describing the upgrade's scope as an ambitious response. “Crypto is volatile.”
Still, Mumtaz downplayed Zcash’s recent plunge, saying similar moves “happen all the time” in crypto. Friday’s pain was compounded by “massive hysteria” and Wall Street headwinds, he added, with the Nasdaq posting its biggest one-day point drop.
