Zcash activates NU7, pulling 60% of transaction fees out of circulation

Zcash switched on its NU7 upgrade on mainnet today, and with it came the Network Sustainability Mechanism. The privacy coin announced the activation via Cointelegraph. It's a structural change to how the network handles the fees people pay to move ZEC around.

Here's the mechanic: 60% of transaction fees now get pulled out of circulation. That slice doesn't disappear — it's parked for later reissue through future block rewards. So instead of fees simply flowing to whoever mines the block, a majority of each fee gets set aside for a future payout.

Network upgrades are how Zcash changes its own rules — the protocol version gets bumped, and the new logic takes effect once it hits mainnet. NU7 clears that bar. The Network Sustainability Mechanism is the headline piece riding along with it.

What happens next is the reissue itself, which depends on future block rewards doing the distributing. Until then, that 60% sits outside circulating supply, waiting its turn.