Zcash activated its NU7 upgrade on the public testnet at block 4,465,026, a trial run ahead of a planned mainnet rollout on November 5. The upgrade cuts the target block interval from 75 seconds to 25 seconds, redirects the majority of transaction fees to a future-reward reserve, and disables the network's oldest privacy system. The testnet uses valueless coins, and no mainnet activation block has been set.
What changes on testnet
NU7 shifts the target block interval from 75 seconds to 25 seconds. If services retain a three-confirmation policy, the target wait for a deposit falls to about 75 seconds from 225 seconds. Actual block times can vary, and different providers may set their own confirmation policies. Three confirmations are an example policy, not a universal requirement or a guarantee of finality. The protocol target interval is a parameter; deposit-crediting speed is determined by each service.
NU7 also redirects 60% of transaction fees to a future-reward reserve, while miners receive 40%. Per-block rewards are cut to one-third to preserve the ZEC issuance schedule. The upgrade disables Sprout transactions, Zcash's oldest privacy system. Holders must move funds before mainnet activation if they want to retain spending capabilities.
Two node programs, one trial
Both major node programs now support the trial. Zakura released its implementation on October 1, and the Zcash Foundation published a test version of Zebra on October 2. Operators need compatible software to follow the upgraded network.
The testnet activation is a trial, not a mainnet change. Developers plan to review test results and decide on mainnet activation on October 20. November 5 remains the target date, but the testnet launch alone does not confirm the upgrade will go live on that schedule.
Market reaction
ZEC USD is trading down 2.5% over the past 24 hours, sitting at just over $1,300. Even with that pullback, ZEC is up more than 30% in the past 30 days, one of the strongest-performing assets through September.
The price move comes as traders weigh the testnet trial against the November target. A testnet activation doesn't guarantee mainnet timing, and the October 20 review is the next checkpoint that could shift the schedule.
What to watch before November 5
Node operators who want to follow the upgraded network need to run compatible software. Sprout holders need to move funds before mainnet activation to retain spending capabilities. The October 20 review will determine whether the November 5 target holds, and developers still haven't set a mainnet activation block.
