Zcash to speed up block creation while keeping halving schedule unchanged
Zcash holders backed reducing the network's target block time from 75 seconds to 25 seconds as part of the next major NU7 upgrade. Holders representing 99.9% of the ZEC participating in the vote, including abstentions, supported the change.
According to the proposal, faster blocks should reduce the waiting time for a transaction's first confirmation. At the same time, the amount of new ZEC issued per block would be reduced so that daily coin issuance remains unchanged.
The change is still only a proposal for NU7. The upgrade's activation date has not yet been set, while developers plan to complete the features that will be included in it by September 30. ZEC holders also supported excluding features that are not ready by that deadline.
Halving schedule to remain unchanged
At the same time, voters opposed changing Zcash's current halving schedule. Holders representing 98.9% of the participating ZEC supported keeping the existing model.
As with Bitcoin, Zcash halvings periodically cut the issuance of new coins in half. However, a separate poll of the community advisory group produced a much closer result: 57 participants supported switching to a gradual issuance reduction without halvings, while 54 favored keeping the current system.
The coinholder vote was held separately from polls conducted by ZecHub, the Zcash Community Advisory Panel and other community groups. Only spendable ZEC held in the Ironwood shielded pool at the time of the network snapshot was eligible to participate.
New issuance mechanism delayed until 2031
Another issue was the Network Sustainability Mechanism (NSM), a proposed model designed to change the network's economics. It would burn and later return 60% of transaction fees through future miner rewards without increasing Zcash's maximum supply above 21 million coins.
Around 97% of participating ZEC holders voted to delay the start of reissuance through NSM until February 2031. About 2.3 million ZEC backed the delay, while roughly 70,000 ZEC supported immediate implementation.
The mechanism was proposed in January amid concerns about the network's long-term security. As block rewards decline, miner revenue will also fall, and developers are looking for a way to preserve sufficient incentives for processing and confirming transactions.
Why Zcash is in the spotlight
Zcash has been rising steadily over the past year amid renewed interest in privacy-focused cryptocurrencies and growing attention from major investors. ZEC was trading at around $200 in March, while in September its price topped $1,000 for the first time in years. One of the main drivers was the August 25 launch of the first U.S. spot Zcash ETF by Grayscale. By early September, the fund had attracted at least $34.4 million in net inflows. Multicoin Capital had also previously fueled interest in ZEC after disclosing a large position in the coin.
At the same time, Zcash has become a key part of the debate over financial privacy. The network allows users to hide the sender, recipient and transaction amount, while demand for such transactions has increased amid the rapid development of AI and blockchain analysis tools. In early 2026, shielded transactions accounted for nearly 60% of Zcash activity, compared with around 30% a year earlier.
Zcash previously gained 72% in just one week.