Zcash launches NU7 update on testnet

Zcash has launched the NU7 update on its testnet, approximately one month ahead of the planned mainnet deployment. This phase allows developers to test new features under real-world conditions before the official rollout.

The NU7 upgrade introduces two primary technical changes: significantly faster block times and a new network sustainability mechanism. The targeted block time will be reduced from 75 seconds to 25 seconds, which is expected to accelerate transaction confirmations for exchanges, wallets, and merchants.

Additionally, the update implements a sustainability model where 60% of transaction fees will be diverted to a reserve intended to fund future mining rewards, while the remaining 40% continues to be distributed to miners. This mechanism is designed to support the network as block rewards decrease over time. To maintain the intended emission schedule, the amount of new ZEC per block will be reduced proportionally to the increased frequency of blocks.

A critical note for users involves the discontinuation of fourth-generation transactions. As a result, ZEC held in the legacy Sprout shielded pool may become inaccessible if owners do not move their funds to a new wallet before the full activation of NU7 on the mainnet.