Zcash has begun testing a major network upgrade that is designed to process blocks more frequently, while also changing how transaction fees and mining rewards are handled.
The NU7 upgrade went live on Zcash’s public test network at block 4,465,026, reducing the targeted time between blocks from 75 seconds to 25 seconds. The activation is ahead of a planned Nov. 5 rollout on the mainnet, the live network that uses real ZEC. According to CoinDesk, developers will review the results of the public trial before deciding whether to proceed.
The testnet uses coins with no monetary value, allowing developers, exchanges, wallet providers and other infrastructure operators to check compatibility before the changes affect real transactions. Zcash’s earlier, separate testing network has been shut down.
Faster target block times enter public testing
A block is a batch of transactions recorded and validated by the network. Reducing the targeted block interval means transactions may be included and confirmed more quickly, although actual block production times can vary.
For a service that waits for three confirmations, the change could reduce the targeted waiting period from about 225 seconds to about 75 seconds if the service keeps the same confirmation requirement. This could be relevant for merchants waiting to accept payments and exchanges waiting to credit deposits.
The trial requires network operators to use software that supports NU7. Zakura, software that tracks Zcash and verifies its transactions, activated its implementation on the public testnet after releasing it on Oct. 1. The Zcash Foundation published a test version of Zebra, another major Zcash node program, on Oct. 2. Both programs now support the public trial.
The shorter block interval does not mean Zcash will create new coins three times faster. NU7 reduces the scheduled reward paid for each block to one-third, preserving the network’s planned issuance schedule despite the higher number of targeted blocks.
Fee changes and the end of Sprout transactions
NU7 also changes the distribution of transaction fees. Miners will receive 40% of fees, while the remaining 60% will be removed from circulation and assigned to a reserve intended to support future mining rewards.
Mining rewards compensate participants that operate the network and verify transactions. The reserve is intended to help fund those rewards as the amount of newly issued ZEC declines. The change therefore affects both the economics of transaction processing and the way future miner compensation is planned.
The upgrade will also disable transactions that use Sprout, Zcash’s oldest private-payment system. People who hold funds in Sprout addresses will need to move those funds before the mainnet activation if they want to retain the ability to spend them through the existing system.
This makes the testnet period important not only for software developers, but also for services and users whose systems interact with older Zcash privacy features. The public test environment gives those participants an opportunity to identify operational issues before the upgrade reaches the live network.
Mainnet decision and current ZEC market picture
Zcash developers plan to assess the public-testnet results and decide on mainnet activation on Oct. 20. Nov. 5 remains the target date for the mainnet rollout, although no activation block has yet been selected.
The mainnet decision will determine whether the new rules move from a network using valueless test coins to the live Zcash network and real ZEC transactions. Until then, the 25-second target remains a feature under public testing rather than a completed change to the mainnet.
Moneyiar market data at 09:28 on Oct. 5, 2026, showed Zcash (ZEC) at $1,329.8131132451, up 0.44% over 24 hours but down 14.03% over seven days. The figures describe the market price and recent performance at that time; they do not indicate the outcome of the NU7 testing process or guarantee how the market will respond to the planned upgrade.
The same Moneyiar data showed Velo (VELO) at $0.005697714, up 4.22% in 24 hours and 16.56% over seven days; Walrus (WAL) at $0.0360475677, up 1.08% and 5.04%, respectively; and Open Campus (EDU) at $0.0549642811, up 5.33% over 24 hours and 10.85% over seven days. These are separate market data points and are not part of the Zcash upgrade.
