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Zcash Holders Just Voted to Make the Network Three Times Faster

 

Zcash holders just approved a major change to how quickly the network processes blocks.

In the NU7 upgrade vote, 99.9% of participating ZEC voting power backed cutting block times from 75 seconds to 25 seconds. That means transactions can reach their first confirmation faster, without increasing the amount of ZEC created each day.

But another part of the vote may matter even more for Zcash's long-term economics.

About 97% backed delaying the Network Sustainability Mechanism (NSM) until February 2031.

What Is the Network Sustainability Mechanism?

The NSM is designed to address a long-term question for Zcash: How will the network continue paying miners to secure it as block rewards decline?

The mechanism would redirect part of Zcash transaction fees into the network's future reward system. The goal is to create an additional source of support for miners without increasing Zcash's 21 million maximum supply.

It is essentially a plan for Zcash's security budget in a future where block rewards become less significant.

Why Delay It?

Zcash holders did not vote to permanently abandon the mechanism. They voted to postpone it.

That gives the network more time to see how Zcash's transaction fees, mining economics and adoption develop before introducing a significant change to its reward structure.

For now, Zcash can move forward with faster blocks while keeping the existing economic model in place.

That makes the NU7 decision interesting for more than just transaction speed. It also shows that Zcash holders are thinking about two different timelines: making the network work better today and deciding how to fund its security years from now.

Following publication of the vote results, ZEC gained 3.8% over 24 hours and extended its monthly rally to 132%.

The faster blocks are happening now. The bigger question is what Zcash's economic model will look like when 2031 arrives.

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