The NU7 upgrade introduces significant shifts to the Zcash architecture, most notably reducing block times from 75 seconds to 25 seconds. To maintain the existing economic model, the software adjusts halving intervals and divides block rewards by three, ensuring the total supply cap of 21 million ZEC remains intact. The Zcash Foundation confirmed that the release also patches five distinct security vulnerabilities.
Network Sustainability and Fee Allocation
Under the new Network Sustainability Mechanism, transaction fees will be split: 40% will go to miners, while 60% will be diverted into a reserve. These funds are slated for gradual reintroduction into the network as block rewards starting at block 8,939,664, expected in February 2031. This structure, which received 96.6% support in a September coinholder poll, aims to provide long-term funding stability. Furthermore, the upgrade imposes new limits on shielded activity per block to protect light wallets from potential spam as block production frequency increases. Users holding funds in the legacy Sprout pool must migrate their assets before activation, as version 4 transactions will be disabled once the NU7 consensus rules take effect.
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