How does NU7 preserve Zcash's issuance schedule?

Block subsidies are reduced in proportion to the shorter block interval, while the number of blocks between halvings triples. The issuance rate remains essentially unchanged and the 21 million ZEC cap is preserved.

When will Zcash's reserved transaction fees be reissued?

Gradual reissuance through block rewards is scheduled to begin at block 8,939,664, expected in 2031.

What happened to ZEC in the original Sprout shielded pool?

NU7 disallows version 4 transactions, which the Sprout pool relies on, making its remaining ZEC unspendable. Approximately 12,224 ZEC remained in the pool at activation.

Did Zcash users and node operators need to update their software?

Node operators had to upgrade before activation to remain on the consensus chain. Most wallets do not require significant updates.

🔥BULLISH 12m ago

TheBlock

Zcash Activates NU7, Cuts Block Target to 25 Seconds

The upgrade preserves ZEC's issuance schedule while setting aside transaction fees for future network security.

Zipp Editorial Aggregated from TheBlock

Zcash Activates NU7, Cuts Block Target to 25 Seconds

Zcash activated its NU7 upgrade on mainnet at block 3,543,405 on Nov. 5, reducing the target block interval from 75 seconds to 25 seconds. Block subsidies fall by the same factor and the number of blocks between halvings triples, keeping the issuance rate essentially unchanged and preserving the 21 million ZEC supply cap.

Why it matters

NU7 introduces the Network Sustainability Mechanism, which directs 60% of each block's transaction fees to a public reserve and leaves 40% for miners. The reserved fees are scheduled for gradual reissuance through block rewards beginning at block 8,939,664, expected in 2031.

Shielded Labs, an independent organization supporting Zcash development, said the mechanism is designed to help sustain network security as block rewards decline. It is the group's first major mainnet deployment on Zcash.

The upgrade also disallows version 4 transactions, making ZEC in the original Sprout shielded pool unspendable. Approximately 12,224 ZEC remained in Sprout at activation. Node operators had to upgrade to stay on the consensus chain, although most wallets do not need significant updates.

Market impact

ZEC fell 5.17% over 24 hours to $1,254.7 as of 2:05 a.m. Friday, during a broader crypto downturn. The GMCI 30 index, which tracks the top 30 cryptocurrencies, fell 6.9%.

$ZEC #Zcash #NU7 #NetworkSecurity

Frequently asked questions

How does NU7 preserve Zcash's issuance schedule?

Block subsidies are reduced in proportion to the shorter block interval, while the number of blocks between halvings triples. The issuance rate remains essentially unchanged and the 21 million ZEC cap is preserved.
How are Zcash transaction fees divided after NU7?

The Network Sustainability Mechanism directs 60% of each block's transaction fees to a public reserve. Miners receive the remaining 40%.
When will Zcash's reserved transaction fees be reissued?

Gradual reissuance through block rewards is scheduled to begin at block 8,939,664, expected in 2031.
What happened to ZEC in the original Sprout shielded pool?

NU7 disallows version 4 transactions, which the Sprout pool relies on, making its remaining ZEC unspendable. Approximately 12,224 ZEC remained in the pool at activation.
Did Zcash users and node operators need to update their software?

Node operators had to upgrade before activation to remain on the consensus chain. Most wallets do not require significant updates.

Source attribution

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