The Zcash network is preparing for the NU7 upgrade, scheduled for activation on November 5. The update will reduce the block time from 75 seconds to 25 seconds, effectively tripling the speed of transaction confirmations. The testnet deployment is set for October 6, with the final mainnet activation height to be determined on October 20.
To maintain the current issuance rate of ZEC, the upgrade includes a mechanism to reduce mining rewards per block by approximately three times. This adjustment ensures that the total supply remains consistent with the network's Bitcoin-style halving schedule, a model supported by 98.9% of voting coinholders who participated in a governance vote involving 2.4 million ZEC.
The upgrade also introduces a Network Sustainability Mechanism to address long-term miner revenue. Starting in 2026, the protocol will begin reserving approximately 60% of transaction fees. These funds will be distributed as supplemental mining rewards beginning in February 2031 to support network security after mining rewards decrease.
The development of the NU7 upgrade is a collaborative effort involving the Zcash Foundation, Project Tachyon, Valar Group, ZODL, and Shielded Labs. These teams reached a unanimous agreement on the project scope and timeline, with underlying specifications expected by September 30. The update does not require major changes to user wallets.
