Zcash has set November 5 as the target date for NU7, its next network update. The crypto project must reduce the block time from 75 to 25 seconds. All this, by laying the foundations for a new mechanism for redistributing transaction fees to miners from 2031.
In brief
- Zcash’s block time is set to drop from 75 seconds to 25 seconds in November, with a testnet scheduled for October 6 and a final mainnet decision on October 20.
- A new mechanism (NSM) will temporarily withhold 60% of transaction fees.
- This technical calendar comes as Grayscale’s Zcash ETF, launched at the end of August, is already the subject of a stock split after attracting more than $233 million.
Three times faster, Zcash’s promise for November
November 5, 2026 is a date to remember. This is what Zcash is targeting to activate NU7, its seventh major update of its crypto network. The objective is in one sentence: divide the time between two blocks by three, reducing it from 75 to 25 seconds. Concretely, a payment confirmation that used to take more than a minute could now only take around twenty seconds. Not enough to compete with a card payment over the counter, but enough to make a private payment on blockchain significantly more feasible.
The timetable for all this is tight and already set out in black and white. Notably, the code must be ready on September 30, the testnet on October 6, then a final decision on the mainnet activation height on October 20. November 5 is therefore only a target for the moment. Above all, producing three times more blocks does not mean issuing three times more ZEC. No. The reward per block will also be divided by three, and the crypto halving interval extended from 1.68 million to 5.04 million blocks. The total emission over time therefore remains, in theory, almost unchanged.
Zcash and the crypto fee redistribution mechanism validated
NU7 also includes the Network Sustainability Mechanism, or NSM for short. The principle is that around 60% of transaction fees will be temporarily set aside, rather than directly returned to crypto miners. These funds do not disappear however because they are supposed to gradually return to the block rewards from February 2031. To compensate for the mechanical decline in the issue over the halvings. Around 2.4 million ZECs participated in the community vote, or 66% of the eligible pool, and here is the result:
- 98.9% of voters supported maintaining the existing halving schedule;
- 96.6% validated February 2031 as the starting point for the reintroduction of fees.
Zcash Foundation, Project Tachyon, Valar, ZODL and Shielded Labs are all aligned on the topic. Rare to see a crypto ecosystem agree so widely without there being a fork war behind the scenes.
Crypto: Grayscale’s Zcash ETF is causing panic
While developers polish their codeWall Street is already having fun with ZEC. Grayscale’s Zcash ETF, listed under the ticker ZCSH on the NYSE Arca since August 25, will experience a 3-for-1 share split effective after September 28. One share will become three, the total value does not change, but the unit price automatically drops, which makes the product more accessible to small crypto wallets.
The Zcash ETF has already attracted more than $233 million in net inflows since its launch, including $46.6 million in one session alone. Enough to prove Crypto Banter right, who sees it as a textbook case. A product that rises too quickly on the stock market ends up splitting to remain accessible, while underlying demand continues to push the fund to buy more ZEC on the market. NU7 has nothing directly to do with this stock market mechanics, but the alignment of the two calendars certainly does not help to reduce the pressure on the token.
What to remember about the Zcash NUZ update?
- NU7 is targeting November 5 to cut Zcash’s block time by three (75 to 25 seconds), with a testnet on October 6.
- The new NSM mechanism will retain 60% of transaction fees before reinjecting them to miners from February 2031, validated by 96.6% of voters.
- Total ZEC issuance remains broadly stable despite accelerated block production, thanks to a block reward divided by three.
- At the same time, Grayscale’s Zcash ETF is already in a 3-for-1 split after more than $233 million in inflows in less than a month.
The technical update of Zcash is not yet effective on the mainnet as the crypto market has already taken a head start. It remains to be seen whether this NU7 will keep its tight schedule, and whether the appetite for the Zcash ETF will follow the same pace by November 2026.
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