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Ahmed Barakat
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Zcash is preparing to triple transaction speed as its NU7 network upgrade approaches November 5, but governance tensions and falling prices are testing investor confidence.
The Zcash upgrade will reduce target block times from 75 seconds to 25 seconds, making transaction confirmations significantly faster. The activation is planned for block height 3,543,405, according to the network’s deployment schedule.
The technical changes arrive as Zcash faces a separate debate over its community-grants funding system. ZEC has also suffered recent price weakness, leaving traders weighing network improvements against growing uncertainty over its future direction.
Zcash Upgrade Targets Faster Payments and ZEC Crypto Network Changes
The upcoming Zcash upgrade introduces several changes beyond faster block production. Under ZIP 218, the network will target a new block every 25 seconds, down from 75 seconds. That could reduce the waiting time for three transaction confirmations from nearly four minutes to around 75 seconds.
The upgrade also introduces limits on shielded transaction activity, designed to improve network efficiency and protect wallets against spam.
Meanwhile, ZIP 235 will remove 60% of transaction fees from circulation and place them into a reserve. The mechanism is intended to support future mining rewards as block subsidies decline.
The upgrade preserves Zcash’s existing 21 million ZEC supply cap and four-year halving schedule. But users still holding funds in the legacy Sprout privacy pool must move them before activation. NU7 will disable version 4 transactions, which are required to spend Sprout funds, potentially leaving remaining balances unspendable.
Node operators must also upgrade their software to remain on the network’s consensus chain. at present, Zcash Foundation has released Zebra 7.0.0, which supports NU7 on mainnet and includes additional synchronization and security improvements.
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Zcash Governance Dispute Adds Pressure as ZEC Weakens
The Zcash Upgrade comes as the project faces renewed debate over how its development ecosystem should be funded. Zcash co-founder Sean Bowe recently proposed ending the automatic allocation of 8% of newly issued ZEC to the Zcash Community Grants program.
Bowe said that the program already holds approximately $125 million after existing commitments, enough to fund years of development without continuing automatic inflows.
His proposal would redirect the allocation toward a reserve supporting future mining rewards. The committee would retain its existing funds and continue distributing grants.
The debate has intensified following scrutiny of a grant supporting privacy-payment outreach at adult-industry events. Critics questioned the spending, while supporters argued the program could introduce privacy technology to users facing financial restrictions.
The proposal does not directly cite that controversy, instead focusing on the size of the grants treasury and long-term funding sustainability.
ZEC has also faced selling pressure ahead of the upgrade. Recent market coverage placed the token near $1,135 after an approximately 11% decline, highlighting the disconnect between improving network fundamentals and short-term price performance.
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Bitcoin Layer 2 Narrative Gains Momentum
Zcash (ZEC) is struggling to regain investor confidence after plunging more than 10% in a single day, extending recent selling pressure despite the upcoming NU7 network upgrade. The sharp decline shows a disconnect between improving network fundamentals and bearish market sentiment.
While Zcash focuses on improving privacy payments, Bitcoin’s scaling ecosystem is also attracting attention.
Bitcoin Hyper is developing a Bitcoin Layer 2 project designed to bring faster transactions and smart-contract functionality to the network, using Solana-style execution as part of its approach.
The project aims to expand Bitcoin beyond simple transfers and long-term storage, opening the door to applications requiring faster execution.
Bitcoin Hyper has now raised more than $33.2 million in presale funding, with HYPER tokens priced at just $0.0136 and staking rewards at 35% APY. The fundraising figure shows continued investor interest as the project moves toward its planned November 22 launch.
With the presale approaching its final stretch, buyers are eyeing the remaining opportunity to enter before HYPER begins trading publicly, although post-launch performance will depend on market demand and execution.
The Zcash Upgrade highlights how established networks are racing to improve transaction efficiency. Meanwhile, newer Bitcoin Layer 2 projects are competing to capture the next wave of blockchain activity.
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