Zcash’s November upgrade could freeze funds in legacy Sprout pool
A proposed Zcash network upgrade dubbed NU7 would disable legacy version 4 transactions, which are the only transaction type that can spend ZEC held in the protocol's Sprout shielded pool. If enacted, any ZEC remaining in the Sprout pool after the upgrade would become unspendable, though the proposal does not outright destroy those funds and leaves the door open to future restoration.

Why It Matters
The change could strand funds held in older wallets that still use Sprout shielding, affecting users who have not migrated assets to newer shielded pools or transparent addresses. The upgrade is time-sensitive: users have a narrow window to check and move any Sprout ZEC before activation.
Key Facts
- Proposal: Zcash Improvement Proposal-2003 (NU7)
- Effect on transactions: Disables version 4 transactions that can spend Sprout funds
- Risk: ZEC left in Sprout pool would become unspendable after upgrade
- Possibility of restoration: Proposal does not burn the funds and allows potential future restoration, but warns holders may never regain access
- User warning: Forum user 'vaspholdings' and Zcash co-founder Zooko Wilcox urged holders to check old wallets
Zcash developers have proposed a network upgrade — labeled NU7 and formalized as Zip-2003 — that would stop the blockchain accepting version 4 transactions. Those older transaction formats are the only mechanism for spending ZEC stored in the network's legacy Sprout shielded pool, so disabling them would render funds in that pool unspendable unless access is restored later. The proposal does not destroy Sprout coins outright; instead it removes the ability to spend them under the current protocol rules while leaving open the possibility of a future fix. However, maintainers caution that holders may never regain access to any ZEC left in Sprout after NU7 activates, creating a real risk for users of older wallets. Community members and project leadership have flagged the issue publicly. A forum user posting as "vaspholdings" urged holders to inspect older wallets for balances in Sprout or transparent addresses ahead of the upgrade. Zcash co-founder Zooko Wilcox repeated the warning on X, underscoring the need for users to check wallets that might contain legacy shielded funds. NU7's schedule sets a testnet activation for Oct. 6, with a decision on whether to proceed slated for Oct. 20 and a targeted mainnet activation on Nov. 5. The upgrade would also shorten Zcash's target block time from 75 seconds to 25 seconds while keeping issuance changes aligned with the existing halving timetable.
Keep Reading

Bitcoin ETFs take in $1.7B in 2 days as BTC tops holder cost basis

BitMEX ends crypto trading, keeps withdrawals open after closure

Stablecoin cross-border flows surge 78%, defying crypto bear market
