Zcash NU7 Upgrade Goes Live, Slashing Block Times From 75 Seconds to Just 25 Seconds

Zcash's latest upgrade removes 60% of transaction fees from circulation. Zcash has activated its major network upgrade, NU7, on mainnet at block height 3,543,405 on November 5. NU7 cut Zcash’s target block times by threefold (from 75 seconds down to 25 seconds). Block rewards will also be adjusted to keep new ZEC entering circulation at roughly the same pace. Additionally, the number of blocks between halvings is tripled. Network Sustainability Mechanism (NSM) Network Sustainability Mechanism (NSM), developed by Shielded Labs, is another major change introduced with the upgrade. NSM is a mechanism that is designed to address a long-standing challenge facing proof-of-work networks: whether transaction fees alone will be enough to maintain adequate network security as block subsidies gradually decline. Under the NSM, 60% of Zcash transaction fees will be removed from circulation and gradually reissued through future block rewards. The mechanism preserves the privacy coin’s fixed supply cap of 21 million ZEC. The reissuance is scheduled to begin at block 8,939,664, which is expected to be reached in 2031. The recycled funds will be distributed along a smooth curve on top of the networ...