The Zcash Foundation announced the public testnet activation at block height 4,465,026. NU7 sets a target block interval of 25 seconds, down from 75 seconds, a change intended to reduce the time users wait for transaction confirmations.
The faster schedule does not, however, mean that Zcash will issue new coins three times as quickly. NU7 reduces the reward per block to one-third, preserving the broader issuance timetable while increasing the number of blocks produced over a given period.
The change is designed to address a practical weakness in payment networks: confirmation latency. A merchant or exchange that waits for three confirmations could face a targeted wait of about 75 seconds under the new schedule, compared with roughly 225 seconds under the current one. Actual waiting times will vary because block production is not perfectly uniform.
The activation comes ahead of a decision expected on October 20 about whether testing has produced sufficient evidence for mainnet deployment. CoinDesk reported that November 5 remains the target date for the mainnet upgrade.
A faster network with a different issuance structure
NU7 also introduces a new approach to transaction fees. Miners will retain 40% of fees, while the remaining 60% will be removed from circulation and directed toward a reserve intended to support future mining rewards as newly issued ZEC declines.
The structure is set out in ZIP 235, Zcash’s proposal for removing 60% of transaction fees from circulation. Its purpose is to create a long-term source of rewards without relying exclusively on fresh coin issuance. That issue is important for network security because miners need an economic incentive to continue processing transactions after block subsidies become smaller.
The proposal does not eliminate the role of transaction fees in miner revenue. Instead, it divides that revenue between immediate compensation for miners and a reserve that can be used to help sustain future issuance. The arrangement gives Zcash a way to plan for declining block rewards while attempting to preserve incentives for network participation.
The faster block schedule adds complexity to that calculation. More blocks will be produced in the same amount of time, so reducing the reward attached to each block is necessary to avoid accelerating the overall supply schedule. The policy therefore combines a technical change in block production with a monetary adjustment intended to keep issuance on its existing path.
Protocol and privacy changes
The block timing changes are defined in ZIP 218, the protocol proposal for 25-second target spacing. The proposal also includes changes to difficulty adjustment and limits related to shielded actions, reflecting the need to adapt network rules to more frequent block production.
NU7 further restricts transactions involving Sprout, Zcash’s oldest shielded payment system. Users who still hold funds in Sprout addresses will need to move those funds before the mainnet activation if they want to retain access through the existing system.
That requirement creates an operational deadline for wallet providers, exchanges and individual users. Any service that still supports Sprout balances will need to identify affected funds, provide a compatible migration path and communicate the change clearly. Users who do not act before the relevant restrictions take effect could face difficulty accessing or transferring those holdings through older transaction methods.
The restriction also highlights a broader policy tension in blockchain upgrades. Removing an older privacy system can simplify protocol maintenance and reduce the burden of supporting legacy components, but it can also create friction for users who depend on those components. Faster confirmations will improve the payment experience only if the surrounding wallet and custody infrastructure is ready for the transition.
Upgrade readiness will be critical
Both major node implementations have released software for the public trial. Zakura’s changelog documents NU7 support, including the 25-second target, the 40% and 60% fee allocation, Sprout transaction restrictions and the revised issuance design. The implementation also records compatibility work for the testnet.
The Zcash Foundation’s announcement covers the corresponding Zebra release candidate and the requirements for operators upgrading their nodes. Miners, infrastructure providers and other participants will need to run compatible software before activation if they want to remain connected to the upgraded network.
This makes the testnet more than a demonstration of faster blocks. It is also a coordination exercise involving software releases, wallet behavior, mining operations and transaction policies. Problems that appear during the trial could delay the proposed schedule or force changes to the implementation.
For users and businesses, the central question is whether Zcash can reduce confirmation times without compromising privacy expectations or weakening the economic incentives that secure the chain. NU7’s outcome will depend not only on whether 25-second blocks function technically, but also on whether the network’s operators can execute the transition without leaving legacy funds or unprepared services behind.
- Web Summit · CC BY 2.0
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