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Zcash has activated its NU7 network upgrade on testnet, moving a set of major protocol changes into live testing about a month before the targeted mainnet rollout.
NU7 Activates on Testnet
According to the ZecBlock testnet explorer, block 4,465,026, NU7’s scheduled activation point, was mined on Oct. 4 at 18:21:45 UTC. Zcash confirmed the activation in a post on X.
The upgrade reduces the network’s target block spacing from 75 seconds to 25 seconds. It also disables version 4 transactions and integrates a Network Sustainability Mechanism, which redirects part of transaction fees into future block rewards.
Sprout Pool Users Face a Deadline
Disabling version 4 transactions has a practical consequence. ZEC held in the legacy Sprout shielded pool becomes unspendable unless users move their funds before NU7 fully activates. Holders with older shielded balances should check where their coins sit well ahead of the mainnet date.
What Happens Next
The Zcash Foundation said Friday that testnet operators should use the Zebra release candidate to test NU7 “under real conditions.” The testnet phase gives developers several weeks to assess the changes before committing to mainnet.
Developers are scheduled to make a final decision and set the mainnet activation height on Oct. 20, based on how NU7 performs. Mainnet activation is targeted for Nov. 5.
Zcash ETFs Post First Weekly Outflow
The upgrade news arrives as Zcash-linked investment products show signs of cooling. According to SoSoValue data, Zcash ETFs recorded their first weekly outflow on record, shedding around $94 million.
Other altcoin products moved the opposite way. Solana ETFs added $2.4 million and XRP ETFs added $4.7 million, extending their inflow streaks.
Also Read: Bitcoin Hits a $85K Sell Wall as ETF Inflows Fade, Here is What On-Chain Data Says
Broader ETF and Market Backdrop
US spot Bitcoin ETFs logged a third consecutive week of net inflows, attracting $241.1 million and lifting cumulative net inflows to $57.8 billion. The funds added $2.4 billion and $6.2 million in the two preceding weeks, and year-to-date inflows stand near $1.2 billion.
Ether ETFs flipped to $138 million in net outflows after drawing $690 million the week before. Their year-to-date net inflows remain around $1.5 billion.
Bitcoin traded near $86,200 at publication, up 3.7% over seven days, according to CoinGecko. Ether changed hands near $2,727, up 3%.
Sentiment softened slightly. The Crypto Fear & Greed Index stayed in “Greed” territory at 70, down from 74.
For Zcash, the Oct. 20 go or no-go decision is the next key date. A smooth testnet run would keep the Nov. 5 target on track, while any problems could push the timeline back.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
