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Zcash’s NU7 upgrade is scheduled to activate at block 3,543,405, around November 5, 2026, and will cut target block times from 75 seconds to 25 seconds. That could reduce the wait for three transaction confirmations from nearly four minutes to about 75 seconds.
Why it matters
NU7 also adds limits on shielded transaction activity and changes how fees are handled. Under ZIP 235, 60% of transaction fees will be removed from circulation and placed in a reserve intended to support future mining rewards as block subsidies decline. The upgrade preserves Zcash’s 21 million ZEC supply cap and four-year halving schedule.
There are user and operator steps to consider. NU7 will disable version 4 transactions, which are needed to spend funds in the legacy Sprout privacy pool, so holders of those funds must move them before activation. Node operators need to upgrade their software; the Zcash Foundation has released Zebra 7.0.0 with NU7 mainnet support.
Market impact
The technical changes arrive amid a dispute over Zcash’s community-grants funding. Co-founder Sean Bowe proposed ending the automatic allocation of 8% of newly issued ZEC to the grants program, citing its approximately $125 million balance after existing commitments. His proposal would redirect the allocation to a reserve for future mining rewards, while leaving the committee’s existing funds available for grants.
ZEC has faced selling pressure despite the planned upgrade. Recent coverage placed the token near $1,135 after an approximately 11% decline, illustrating the gap between the network’s planned improvements and near-term market sentiment. The proposal and upgrade leave investors watching both execution and how the community resolves its funding debate.
Frequently asked questions
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How much faster could Zcash confirmations become under NU7?
NU7 targets a block every 25 seconds, down from 75 seconds. Three confirmations could take about 75 seconds instead of nearly four minutes.
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What does ZIP 235 change about Zcash transaction fees?
ZIP 235 will remove 60% of transaction fees from circulation and place them in a reserve intended to support future mining rewards as block subsidies decline.
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What should Sprout pool users do before NU7 activates?
They must move funds held in the legacy Sprout privacy pool before activation because NU7 disables version 4 transactions, which are required to spend those funds.
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What funding change did Sean Bowe propose for Zcash grants?
Bowe proposed ending the automatic allocation of 8% of newly issued ZEC to community grants and redirecting it to a reserve for future mining rewards. The committee would retain its existing funds.
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How has ZEC traded as the upgrade approaches?
Recent market coverage placed ZEC near $1,135 after an approximately 11% decline, despite the planned network improvements.
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