Zcash activated its NU7 upgrade on mainnet, cutting the target block interval from 75 seconds to 25 seconds. The upgrade also starts a fee reserve mechanism and disables the original Sprout shielded pool. ZEC fell during the same 24 hours as the broader crypto market.
Zcash's NU7 upgrade activated on mainnet at block height 3,543,405 on Nov. 5, according to the network's announcement. The change reduces the target block interval from 75 seconds to 25 seconds.
Faster blocks, same issuance schedule
Block subsidies scale down by the same factor, so the rate of new ZEC issuance stays essentially unchanged. The number of blocks between halvings triples, which preserves the existing schedule and the 21 million ZEC supply cap.
Blocks did not hit the new target right away, however. During the first few hours, observed intervals averaged around 39 seconds while the network adjusted its mining difficulty.
A fee reserve and the end of Sprout
NU7 also activates the Network Sustainability Mechanism. It removes 60% of each block's transaction fees from circulation and stores them in a public reserve, while miners receive the remaining 40%. The reserved fees are scheduled for gradual reissuance through block rewards beginning at block 8,939,664, expected to start in 2031.
Shielded Labs, an independent organization supporting Zcash development, said the mechanism helps address the long-term challenge of sustaining network security as block rewards decline. It also said the mechanism is its first major mainnet deployment on Zcash.
The upgrade also disallows version 4 transactions. Because the original Sprout shielded pool relies exclusively on that format, any ZEC left there becomes unspendable, and approximately 12,224 ZEC sat in the pool at the activation height. Crypto.news reports that no recovery change has received approval.
ZEC slips amid a market downturn
ZEC dropped 5.17% in the past 24 hours to trade at $1,254.7 as of 2:05 a.m. on Friday, amid a broader downturn in the crypto market. The GMCI 30 index of the top 30 cryptocurrencies is down 6.9%.
Crypto.news puts the Bollinger Bands' middle line at $1,235.20 and the upper band at $1,343.58, marking nearby support and resistance.
Sources: The Block, crypto.news
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