Zcash NU7 Upgrade Risks Freezing Legacy Funds

Zcash's upcoming NU7 upgrade could have unintended consequences for users holding ZEC in its legacy Sprout shielded pool. According to a proposal, the new update would stop accepting the older transaction format that allows users to spend Sprout funds.

This means that if users do not move their funds before the upgrade, they may lose access to them permanently. However, it's worth noting that the proposal does not intend to burn the funds and leaves open the possibility of restoring access later.

Zcash co-founder Zooko Wilcox shared a warning on X about checking old wallets for Sprout ZEC before the upgrade. The upgrade is scheduled to activate on testnet on October 6, with the mainnet activation planned for November 5, pending a decision on October 20.