Zcash Foundation Targets Small ZEC DAT Domain in Trademark Enforcement

The Zcash Foundation initiated a trademark enforcement action against Zcash Strategy, a small digital asset treasury (DAT) company run by a sub-300-follower account on X, related to its website domain (zcashstrategy.com). Controversy arose around this action, dividing the ZEC community and sparking discussions related to the Zcash Foundation trademark policy.

Between December 2 and 3, the Zcash Strategy account on X posted the screenshot of an email, now confirmed, sent from the Zcash Foundation. In the shared piece, we see what seems to be a cease and desist order from the Foundation for a “voluntary [domain] transfer” to prevent further escalation to Uniform Domain-Name Dispute Resolution Policy (UDRP) panelist ruling.

In the confirmation comment that follows the original post where Zcash Strategy says it is “very disappointed” about what happened, the Zcash Foundation explained they received reports from “six different Zcash community members as a violation of the Zcash trademark.”

Nevertheless, the Foundation added that it now considers the post as “an official request to use the Zcash trademarks,” which is now being analyzed.

Screenshot of the now-deleted comment by the Zcash Foundation | Source: X

In August 2024, Josh Swihart, CEO of the Electric Coin Co. (ECC), terminated the Trademark Donation and License Agreement dated November 6, 2019—communicated in a post on the Zcash Community Forum—and made specific requests for the Zcash Foundation on how to properly use the trademark.

Controversy Arises From Zcash Foundation’s Trademark Enforcement Action

Coinspeaker has reached out to the Zcash Foundation via private messages, email, and public comments on X. By the time of this writing, the Zcash Foundation had not responded to our inquiries.

According to its trademark policies, independent projects are allowed to use the “Zcash” word and logos, but it draws lines to protect the brand. For example, the use in “domains and websites” is permitted as long as it has proper disclaimers of being independent projects with no connections to the Foundation or other relevant entities.

Safety First, a Zcash supporter, posted a thread addressing the trademark policy and what they think are the reasons for this action.

While accessing the website nine hours from Zcash Strategy’s original post, Coinspeaker verified that there is a “legal disclaimer” saying it “is an independent organization in the Zcash ecosystem,” adding that “Zcash Strategy is not affiliated with, owned by, or under common control with Zcash Foundation (the Foundation).”

Legal disclaimer on the Zcash Strategy website | Source: zcashstrategy.com

However, it is unclear if the disclaimer was added before or after the email exchange and public posts. Neither the Zcash Foundation nor the Zcash Strategy answered Coinspeaker to clarify it.

Notsofast (200,000 followers) highlighted the issue of “going after a sub 300 follower account for their web domain” at a time when ZEC is underperforming, down “50% from its [local] high.” Other commentators raised centralization and permission concerns around the company-like model and trademark enforcement.

On the other hand, the activity has gathered support from some known Zcash supporters. Tom Howard pointed out the $36,000 committed to the DAT and said, “This looks like a scam” or that the person behind Zcash Strategy is “naive about listing DATs.” “Defensive trademark to sue scams is basically the only thing that does make sense,” he added in a follow-up comment. Other commentators seem to agree this is a legitimate way to “protect the community.”

ZEC ZEC $349.1 24h volatility: 9.4% Market cap: $5.75 B Vol. 24h: $1.68 B is currently trading at $332, down 55% from the $744 local high, according to TradingView data, after an impressive run that accumulated over 1,000% gains in two months, as demand and market interest for “privacy coin” grew in searches and capital allocation.

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