The Zcash network is activating its NU7 upgrade at block 3,543,405, making remaining funds in the legacy Sprout privacy pool unspendable. ZecStats data showed roughly 12,224 ZEC still held in Sprout shortly before activation, worth around $15 million to $16 million near recent ZEC prices of about $1,230. The deadline affects only users with older Sprout addresses, and migration activity has already accelerated: more than 10,000 ZEC left the pool over the previous week, including about 9,094 ZEC on Sunday alone, while only around 40 ZEC moved out on Wednesday.
Under ZIP 2003 and ZIP 259, NU7 rejects all version-4 transactions, the format required to spend Sprout coins. Newer v5 and v6 transaction formats do not support Sprout spends, so leftover Sprout notes cannot move after activation. The ban is network-wide and cannot be avoided through wallet settings. Private keys alone do not restore spending once consensus rejects version-4 transactions. Sapling, Orchard, and transparent ZEC balances outside Sprout remain spendable under the supported formats.
The ZEC held in Sprout will not be burned or removed from the issued supply, but holders will lose practical spendability. A future network upgrade could theoretically restore access, though the ZIP documentation notes that such a path may never return. Activations are tied to block height rather than a fixed clock, with clock estimates placing the switch near 9:30 p.m. Eastern on November 5, 2026.
NU7 also reduces Zcash's target block interval from 75 seconds to 25 seconds, meaning blocks arrive about three times faster and three confirmations drop from roughly 3.75 minutes to about 75 seconds. The 21 million ZEC supply cap and four-year halving schedule remain unchanged, while per-block subsidies adjust to preserve daily issuance. In addition, ZIP 235 routes 60% of transaction fees to the Network Sustainability Mechanism, with miners retaining the remaining 40%. The upgrade is part of a broader network modernization rather than a standalone asset freeze.
