Network Sustainability Mechanism

Zcash co-founder Sean Bowe has proposed stopping the automatic allocation of newly created ZEC to Zcash Community Grants and redirecting that share to a future mining reserve. The plan cites a treasury estimated at roughly $125 million after commitments, while the grants committee would retain funds it has already received.

Zcash developers are aiming for a Nov. 5 activation of NU7, an upgrade that would reduce block times from 75 seconds to 25 seconds. The proposal would also temporarily set aside about 60% of transaction fees for future miner rewards beginning in February 2031.

Zcash holders overwhelmingly supported shorter block times, preserving the network’s bitcoin-style halving schedule and moving ahead quickly with the NU7 upgrade. Nearly 2.4 million ZEC participated in the privacy-preserving vote, representing roughly two-thirds of eligible tokens.