Zcash is preparing for a major network upgrade that could reshape transaction speeds across its privacy-focused blockchain.
The upcoming NU7 upgrade promises faster payments while keeping the cryptocurrency’s supply rules unchanged. Meanwhile, ZEC traders have increased their buying activity ahead of the scheduled activation.
The approaching upgrade has also drawn attention to mining rewards, network security, and changes affecting older Zcash wallets.
Developers have scheduled Zcash Network Upgrade 7 (NU7) for block 3,543,405, which they expect around November 5. The upgrade will cut block times from 75 seconds to 25 seconds, making transaction confirmations three times faster.
Meanwhile, ZEC has gained more than 15% over the past week, trading near $1,300. The cryptocurrency climbed from approximately $1,060 on October 19 to nearly $1,360 on October 21.
Its market capitalization now stands near $22 billion, placing Zcash ninth among cryptocurrencies by market value.
Zcash NU7 upgrade will cut transaction confirmation times by 67%
The Zcash NU7 upgrade will significantly reduce the time users spend waiting for their first transaction confirmation.
Currently, miners produce a new block approximately every 75 seconds. Following activation, the network will generate blocks every 25 seconds.
This change builds on the Blossom upgrade from December 2019, which reduced block times from 150 seconds to 75 seconds.
Faster confirmations could reduce payment delays for merchants, exchanges, and other services that rely on Zcash transactions.
Importantly, developers have designed NU7 to preserve Zcash’s existing monetary policy despite the faster block production.
The network currently distributes 1.5625 ZEC per block. After activation, rewards will decrease to approximately 0.5208 ZEC per block.
Consequently, miners will produce three blocks during the previous 75-second interval without increasing the overall issuance rate.
Zcash will also retain its maximum supply of 21 million ZEC, with approximately 16.99 million tokens currently circulating.
NU7 introduces deferred mining fees and ends sprout transfers
Beyond faster transactions, NU7 will introduce changes to how Zcash miners collect transaction fees.
Under the existing system, miners receive all transaction fees included in their blocks. The upgrade will change that distribution.
Miners will immediately collect 40% of fees, while the network will reserve the remaining 60% for future payments.
According to the upgrade’s design, miners will begin receiving those deferred rewards in February 2031.
The mechanism aims to support mining incentives as Zcash undergoes future halvings, which reduce block subsidies approximately every four years.
Additionally, NU7 will permanently disable transfers from Sprout, Zcash’s original privacy pool introduced in 2016.
Holders must move any remaining Sprout funds into newer pools before activation or lose access to transferring those coins.
Developers began testing NU7 on the testnet in early October, allowing exchanges and wallet providers to prepare.
ZEC price rally gains momentum as futures open interest hits $4.55 billion
Trading activity has accelerated ahead of the November 5 activation target.
According to CoinGecko figures cited in the market report, ZEC perpetual futures open interest has reached approximately $4.55 billion.
That compares with roughly $1.15 billion in daily spot trading volume, highlighting substantial leveraged positioning.
However, elevated derivatives exposure can amplify price fluctuations as traders adjust positions around major network events.
For now, Zcash continues operating under its existing rules until the blockchain reaches activation block 3,543,405.
The approaching NU7 upgrade gives traders a specific milestone to monitor as ZEC prices respond to growing market activity.
