A new lawsuit is sorely testing the Zcash Founders Reward model

A new lawsuit is sorely testing the Zcash Founders Reward model

 

Image: Supplied The Electric Coin Company is being sued, highlighting the sheer messiness of the Founders Reward scheme.

Key points

The Zcash Electric Coin Company is being sued by a former employee.

The lawsuit casts a light on some of the downsides and complications of the Zcash Founders Reward funding model.

The Electric Coin Company is struggling financially, and its fate is bound to that of Zcash.

The Electric Coin Company (ECC) is one of the key entities behind Zcash , one of the word’s foremost privacy cryptocurrencies. It’s now being sued by former employee Simon Liu over allegations that it failed to compensate him as agreed for his work. In a nutshell

Here’s what allegedly happened in a nutshell, according to the lawsuit: 27 October 2016: Simon Liu signs on with ECC, and is granted vested stock options of 15,000 units of stock. 31 December 2018: ECC allegedly says something to the effect of "actually, we never really created a stock option plan." 4 January 2019: Liu is all like "where’s my stock options?" and asks to see the company books. 8 January 2019: "[ECC] stated [Liu] has no right to demand a books and records inspection." 23 January 2019: ECC said it was going to issue new units, diluting everyone’s existing share. 22 May 2019: Liu expresses concerns about the impending dilution, is allegedly told to "stop spreading incomplete and inaccurate information and unverified rumours" lest his employment be terminated. 28 May 2019: Liu […]