Zcash’s November Upgrade May Freeze Funds in Legacy Sprout Pool
Zcash users holding ZEC in the legacy Sprout shielded pool are urged to move their funds ahead of the upcoming NU7 upgrade to avoid losing the ability to spend them. The proposed update will stop supporting the older transaction format that enables spending Sprout funds, rendering any remaining ZEC in the pool unspendable post-upgrade. While these funds won’t be burned, there’s a risk they may never be accessible again.
Overview and Timeline of NU7 Upgrade
NU7 is a forthcoming Zcash upgrade currently scheduled for testnet activation on October 6, with a decision regarding mainnet activation expected by October 20. Pending approval, the mainnet rollout is planned for November 5. A significant aspect of this upgrade is the cessation of support for the older transaction format that facilitates spending funds from the Sprout pool.
The update also aims to reduce the target block time from 75 seconds to 25 seconds and will implement changes to ZEC issuance that maintain the existing halving schedule.
At the time of writing, ZEC was trading at $1,627.82, reflecting an 8% increase over the past 24 hours and nearly 40% over the prior week.
Impact on Users Holding Sprout Balances
Users with residual funds in the Sprout pool stored in legacy wallets may lose the ability to spend these funds once the upgrade is activated. The Zcash Improvement Proposal-2003 clearly states that while these Sprout funds will not be burned, access to spend them could be permanently lost.
A community member operating under the username “vaspholdings” on the Zcash forum urged holders to check older wallets because they might contain both Sprout and transparent ZEC. The proposed spending restrictions apply exclusively to the Sprout pool funds.
Zcash co-founder Zooko Wilcox also issued a warning on the social platform X, emphasizing the importance of moving funds before the upgrade.
Why it matters
This Zcash upgrade marks a significant milestone for the network as it deprecates an outdated transaction format, directly impacting users holding funds in the Sprout pool. Without prompt action, these users risk losing spending access to their assets permanently. Additionally, the upgrade's reduction of block time aims to enhance network performance while preserving the issuance schedule, underscoring the protocol’s ongoing evolution. Consequently, awareness and proactive fund management are crucial for community members to avoid unintentional losses and benefit from the improvements.
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