The NU7 upgrade was activated on the Zcash mainnet at block 3,543,405 after a long wait. It introduces the network sustainability mechanism based on fee recirculation: 60% of transaction fees fund a reserve and 40% go to miners, guaranteeing annual issuance of 210 ZEC. The reserve will remain locked until 2031, when it will fund additional mining rewards, while the code is being prepared for an EIP-1559-style fee-burning model. The update also cuts block production time from 75 to 25 seconds and blocks legacy transactions, including those from Sprout pools. During Bitcoin’s 9% decline, ZEC fell by as much as 5%, but some investors expect it to reach 2% of Bitcoin’s market capitalization, worth roughly $2,000 by the end of the year.
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