Zcash Upgrade Locks $15M in Funds
The NU7 upgrade has gone live, speeding up private payments by reducing block times, but has also rendered around $15 million in legacy funds unspendable
Zcash's landmark NU7 upgrade has gone live, introducing significant changes to the network. The upgrade took effect at block 3,543,405 at 02:34 UTC, reducing the target time between blocks from 75 seconds to 25 seconds. This change is expected to speed up private payments on the network.
One of the notable consequences of the upgrade is that around $15 million in legacy Sprout funds have been rendered unspendable. The Sprout pool balance is around 12,224 ZEC, which is now inaccessible due to the upgrade. However, it is possible that a future network upgrade could restore access to these funds.
The NU7 upgrade also introduces a Network Sustainability Mechanism, which removes 60% of transaction fees from circulation. These removed fees will be reissued through future mining rewards starting around February 2031. This mechanism is designed to promote the long-term sustainability of the network.
In addition to these changes, the upgrade preserves Zcash's 21 million ZEC supply cap and halving schedule. It also introduces limits on shielded activity, which are designed to reduce wallet synchronization demands. These changes are intended to improve the overall performance and security of the network.
## Why it matters The NU7 upgrade is a significant milestone for Zcash, as it aims to improve the network's performance and sustainability. The changes introduced by the upgrade will have a direct impact on users, particularly those holding legacy Sprout funds. While the upgrade has rendered some funds unspendable, it also paves the way for future improvements and enhancements to the network.
The upgrade's impact on the Zcash ecosystem will be closely watched in the coming weeks and months. As the network adjusts to the new changes, users and developers will be monitoring the effects on transaction times, mining rewards, and overall network security. The fate of the unspendable Sprout funds also remains to be seen, with the possibility of a future upgrade restoring access to these funds.
