The Zcash development team plans to activate network upgrade NU7 on November 5, with the core adjustment being a reduction in block time from 75 seconds to 25 seconds. For a public blockchain focused on privacy payments, this means transaction confirmation speeds will significantly improve, and waiting times for shielded address transactions will be further reduced.
The testnet will launch first in October.
Developer Sean Bowe stated that NU7 will first enter the testnet on October 6. After observing the network’s performance under the new rules, the team will determine the final mainnet activation height on October 20. Under the current schedule, the underlying specifications will be completed by September 30.
Multiple teams and organizations involved in Zcash software development, including the Zcash Foundation, Project Tachyon, Valar Group, ZODL, and Shielded Labs, have reached consensus on the scope and timing of this upgrade.
The block reward is reduced proportionally.
A faster block production rate would lead directly to a result: if rules remain unchanged, the number of blocks generated per day would increase by approximately threefold, resulting in a corresponding increase in newly issued ZEC. To prevent this change, NU7 proposes ZIP 218 to reduce the block reward by a nearly proportional amount.
Under this design, the total issuance of Zcash per unit of natural time will remain unchanged. That is, although the network’s confirmation speed increases, the daily new supply of ZEC will not rise due to faster block production.
Supplementary miner rewards after 2031
Zcash holders previously voted on whether to retain the halving mechanism. The results showed that 98.9% of votes supported continuing the halving model similar to Bitcoin. This vote involved approximately 2.4 million ZEC, representing 66% of the eligible voting pool.
However, the halving mechanism also means that miners' long-term income will gradually decrease. To address this, NU7 will introduce a network sustainability mechanism, planning to retain approximately 60% of transaction fees. These funds are expected to be distributed as supplemental rewards to miners starting in February 2031.
For ordinary ZEC holders, this upgrade will not change how you use the coin daily. Wallets are not expected to require significant adjustments, and no new transaction types will be added to the network. The focus of the upgrade is to improve payment confirmation efficiency while maintaining the fixed supply commitment and setting aside funds for future network security budgets.
Rebound after vulnerability patch in July
This upgrade follows a period of volatility that Zcash experienced over the past few months. In July, Zcash completed the Ironwood upgrade, which patched a four-year-old vulnerability. The flaw could theoretically have been exploited to forge ZEC, causing market concern and triggering a short-term price drop of 38%.
Since then, ZEC has clearly rebounded. The report notes that ZEC has gained over 2,500% over the past year, driven by the completion of the Ironwood upgrade and Grayscale’s launch of a ZEC spot ETF product.