Zcash (ZEC) reported that its significant protocol enhancement, NU7, successfully launched on the mainnet at block height 3,543,405 on November 5.
This update shrinks the target block period from 75 seconds down to 25 seconds. Block rewards are adjusted lower by this exact same multiplier so that the overall generation rate of fresh ZEC stays virtually identical. The quantity of blocks separating halvings is multiplied by three, thereby maintaining the current halving timeline and the hard limit of 21 million ZEC.
Furthermore, NU7 introduces the Network Sustainability Mechanism. This protocol burns 60% of every block transaction fee by removing it from active circulation and depositing it into a public treasury, leaving the remaining 40% for miners. These pooled fees are planned to be gradually released back into circulation via block rewards starting at block height 8,939,664, projected for 2031.
Shielded Labs, an autonomous entity backing Zcash development, noted that like Bitcoin, Zcash encounters a lasting obstacle in maintaining network security as block subsidies decrease, adding that the NSM tackles this issue while keeping the 21 million maximum coin limit intact. The group highlighted that NSM marks its premier substantial mainnet release for Zcash.
The upgrade additionally deprecates version 4 transactions. Because the legacy Sprout shielded pool depends entirely on this specific architecture, any ZEC left stranded inside Sprout is now locked and cannot be spent. Around 12,224 ZEC remained inside that pool at the moment of activation.
Node administrators needed to update their software prior to the activation block in order to stay synchronized with the correct consensus chain. Most software wallets did not need major modifications to handle these updates.
ZEC declined by 5.17% over the preceding 24 hours to change hands at $1,254.7 by 2:05 a.m. on Friday, reflecting a wider correction across the digital asset market. The GMCI 30 benchmark, tracking the top thirty cryptocurrencies, experienced a 6.9% decline.
Originally published at https://www.theblock.co/news/defi/2026-11-06-zcashs-nu7-goes-live-435807.
