Zcash (ZEC) has just scored a major network milestone after activating its highly anticipated NU7 upgrade early Friday, introducing a significant improvement that cuts the blockchain’s target block interval from 75 seconds to just 25 seconds. The threefold increase in block production speed marks a notable step forward for the privacy-focused cryptocurrency, but with market watchers eyeing an ambitious $5,000 price target, could the latest network breakthrough provide the catalyst ZEC bulls have been waiting for?
A New Era Of Zcash is Here
Zcash has officially entered a new chapter after its landmark NU7 network upgrade went live at block 3,543,405 early Friday, activating the Network Sustainability Mechanism (NSM). The major change introduces a new approach to funding the privacy-focused blockchain’s long-term security as block rewards gradually decline. Celebrating the milestone, Zcash’s official account declared that “a new era of Zcash is here.”
NU7 has successfully activated on mainnet. A new era of Zcash is here. $ZEC pic.twitter.com/rPaSFe9h7j
— Zcash (@Zcash) November 6, 2026
The Network Sustainability Mechanism addresses a long-term challenge that Zcash shares with Bitcoin: how to keep its network secure as mining rewards decline with each halving. As block subsidies become smaller, both networks face questions about whether transaction fees alone can provide enough incentive for miners to continue securing the blockchain.
Under the new mechanism, 60% of transaction fees from each block goes into a publicly visible reserve, while miners receive the remaining 40%. The approach creates a dedicated funding pool to support Zcash’s long-term security and sustainability while preserving its hard-capped supply of 21 million ZEC.
The reserved fees are scheduled to be gradually reissued through block rewards starting at block 8,939,664, expected in 2031, with the recycled funds distributed along a smooth curve on top of the existing halving schedule.
NU7 introduces several other notable changes, including a reduction in Zcash’s target block interval from 75 seconds to just 25 seconds, according to the Zcash Foundation. The upgrade also retires Sprout, the network’s original privacy pool launched in 2016, leaving approximately $16 million worth of ZEC locked in the pool. However, faster block production comes with a trade-off: it increases the likelihood of orphan blocks, which are valid blocks discarded by the network when another miner’s block reaches the rest of the network first.
NU7 also introduces a cap on the amount of shielded transaction activity that can be included in each block, reducing the volume of data wallets need to scan when searching for incoming payments. This is expected to make wallet synchronization more efficient and improve the overall user experience.
Despite the major network upgrade, ZEC has yet to register a strong bullish market reaction. The cryptocurrency was down 0.8% over the past 24 hours, trading at $1,313 at press time, as broader weakness across the crypto market weighed on prices.
Despite the recent price pullback, some prominent crypto investors remain bullish on Zcash’s longer-term prospects. Chris Burniske, a renowned investor known for his early interest in Solana (SOL), pointed to the ZEC/BTC chart as the key indicator to watch, describing it as “still the only chart that matters as it shows what comes next.”
Meanwhile, Zcash co-founder Eli Ben-Sasson remains firm on his ambitious price projections, even as ZEC faces renewed selling pressure. As ZyCrypto previously reported , Ben-Sasson doubled down on his prediction that the privacy-centric cryptocurrency could reach $5,000 before the end of 2026, describing a move to $2,000 as a “no-brainer.” He also revealed that he had backed the $2,000 target through OffMarket, a privacy-focused platform linked to prediction market Polymarket.
