Zcash is distancing itself from a token launch that briefly looked official...

The Zcash Foundation has denied any connection to a new token project called ZRC-20 after a post claimed that Zcash had launched its own token standard. The issue began with a post from the @ZcashFoundation account saying that Zcash now has a token standard. That post has since been deleted.

The original post said ZRC-20 would soon allow users to create, mint and transfer tokens directly on the Zcash ($ZEC) blockchain without needing a protocol upgrade or permission, and presented $CASH as the first token under the proposed standard, with a maximum supply of 21 million.

The Foundation's Rebuttal

The Foundation said it had no prior knowledge of ZRC-20 or its $CASH token, adding that the project is privately developed and not part of the official Zcash protocol. It described ZRC-20 as a third-party private initiative that does not represent an official Zcash token standard or protocol functionality, and advised users to conduct their own thorough research before interacting with any tokens.

@Zcash also weighed in separately, telling its followers that ZRC-20 is not a $ZEC protocol standard and that Zcash's own planned token feature remains on a test network only.

The available information does not explain how promotional material for the private project appeared through the Foundation's account. There is also no confirmation that the account was hacked or compromised, meaning the incident should not be described as an account breach without further evidence.

What ZRC-20 Actually Is

ZRC-20 is described as a minimal, BRC-20-style fungible token standard for Zcash, where token state is tracked by JSON inscriptions covering deploy, mint, and transfer actions. Indexers and wallets determine balances by following inscription ownership, with no smart contracts required. The specification presents itself as open and permissionless.

The episode highlights the risks that can arise when unofficial projects are promoted, even momentarily, through official-looking channels. For now, the @ZcashFoundation has made its position clear: ZRC-20 is not sanctioned, and users should proceed with caution.

Sources:
Crypto Times: Zcash Foundation Denies Connection to ZRC-20 Token Project
TechFlow: Zcash Foundation denies any association with the ZRC-20 token standard and the CASH token
ZRC-20 Specification: Zcash Fungible Token Standard