Zcash NU7 Upgrade Enters Testnet Amid Market Challenges
The Zcash NU7 upgrade has officially launched on the testnet, marking a key milestone ahead of its anticipated mainnet activation in November. The upgrade went live with the activation of block 4,465,026 on October 4, introducing significant changes to the Zcash network, including longer block times and a new system for distributing transaction fees.
One of the major modifications in the NU7 upgrade is the reduction of the network’s target block interval from 75 seconds to 25 seconds, which is expected to speed up transaction confirmations. Additionally, the upgrade introduces the Sustainability Network Mechanism, which allocates part of transaction fees toward future block rewards, ensuring the network's financial sustainability without altering the maximum supply model of Zcash.
The testnet phase allows developers to thoroughly test the upgrade before mainnet activation, which is currently scheduled for November 5, pending the outcome of testing. The final decision on the activation height will be made on October 20, depending on the testnet results.
Amid these technical advancements, ZEC is facing market pressure, with Grayscale’s ZCSH Spot ETF experiencing net outflows of $93.56 million in the week ending October 2. This outflow coincides with a price correction for ZEC, which fell from above $1,650 at the end of September to around $1,300.