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AI summary of a third-party reportNeutralNewsDesk

Zcash's NU7 upgrade activates fee-recycling mechanism for future block rewards

The upgrade went live at block 3,543,405, removing 60% of transaction fees from circulation to be reissued from 2031, and cutting block times to 25 seconds.

Why it matters: The upgrade changes how Zcash pays for network security once halvings shrink block rewards, a long-term question for holders of the privacy coin.

InvestIn.News NewsDesk · 1 min read
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Picture from Decrypt for: Zcash's NU7 upgrade activates fee-recycling mechanism for future block rewards
Image: Decrypt
Original reporting: Decrypt Agent, Decrypt

Key points

  • NU7 activated at block 3,543,405, with 60% of transaction fees recycled and reissued from 2031 under the 21 million ZEC cap
  • Target block time falls from 75 seconds to 25, and the 2016 Sprout pool is retired with about $16m of coins locked in it
  • Dev Fund proposals are due by 8 November, with coinholder and community panel polls running 16-30 November

The change is meant to help fund the privacy coin's security as block rewards shrink, and the project's official account called it "a new era of Zcash".

The NSM addresses a problem Zcash inherited from Bitcoin: whether transaction fees alone can pay miners once block subsidies fall with each halving. Under the mechanism, 60% of fees leave circulation and are gradually reissued through future block rewards from 2031, spread on a smooth curve on top of the existing halving schedule while the 21 million ZEC cap holds. Shielded Labs, the development organisation behind it, built the mechanism on an idea developer Nate Wilcox proposed years ago as the Zcash Posterity Fund.

Zakura developers measured a 3.43% orphan rate at 25-second blocks in a stress test of 80 nodes across 11 regions, against 1.57% at 75 seconds, but expect under 1% on the live network.

The upgrade lands as the community debates Zcash Community Grants and its share of the Dev Fund. Five coordinating organisations set an expedited timetable after saying tensions were high, with proposals due by 8 November and polls running from 16 to 30 November. A further upgrade, NU 7.1, would implement any rough consensus.

What to watch: Dev Fund proposals are due by 8 November, with coinholder and community panel polls running from 16 to 30 November.

Read the full story on Decrypt

Live updates on NewsFeeds:AltcoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)

How this was produced: an AI model wrote this summary of Decrypt’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.

Not investment advice. Read the risk disclaimer.

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