TREE NEWS update: Zcash activated its NU7 upgrade at block 3,543,405 at 9:34 p.m. ET Thursday, switching on Shielded Labs’ Network Sustainability Mechanism. The mechanism takes 60% of transaction fees out of circulation.
Zcash Activates NU7, Removing 60% of Transaction Fees From Circulation
The mechanism turns a routine upgrade into a structural change to Zcash's supply dynamics, since fees that once stayed liquid now leave circulation entirely. That matters less for the near-term fee base than for precedent: it tests whether a shielded chain can fund its own long-term security without relying on block subsidies alone. Holders and miners are the obvious affected groups, but the broader RWA and privacy-coin audience will read this as a template for sustainability funding. Whether the mechanism meaningfully shifts supply behavior as fee volumes change is the open question.
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