1Zcash activated its NU7 upgrade early Friday at block 3,543,405 on mainnet.
2The upgrade introduces the Network Sustainability Mechanism, removing 60% of transaction fees to fund future block rewards.
3Reissuance of recycled fees will begin in 2031 while maintaining the strict 21 million ZEC supply cap.
4NU7 also reduces the target block time from 75 seconds to 25 seconds and retires the old Sprout privacy pool.
5Zcash coinholders and community panels will vote this month on Dev Fund allocations and potential follow-up upgrades.
Key takeaway
Zcash successfully launched its NU7 network upgrade, implementing a mechanism to recycle transaction fees for future network security while keeping the total coin supply capped at 21 million ZEC.
Short-term impact (days–weeks)
● NEUTRAL
Markets may absorb the technical changes and faster block times without immediate dramatic price swings.
Medium-term impact (1–3 months)
▲ BULLISH
Long-term security adjustments and upcoming community governance votes could improve network stability over the coming months.
Key risks
Faster 25-second block times could potentially increase the risk of orphan blocks on the live network.
Approximately $16 million worth of coins remain locked in the retired Sprout privacy pool.
Ongoing community debates regarding the Dev Fund could create governance tensions.
This page summarizes and analyzes publicly reported news. Read the full story at the original source. AI-generated analysis — not financial advice.