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Zcash Upgrade Could Lock $16 Million in Crypto Forever
Zcash’s planned NU7 upgrade could make around 12,224 ZEC held in its original Sprout privacy pool inaccessible, worth an estimated US$15 million to US$16 million at recent prices. The change matters because affected owners may lose the ability to move their funds even if they still have their wallet passwords and private keys.
NU7 will invalidate version-4 transactions, the only format that can withdraw coins from Sprout, when the network reaches block 3,543,405. Sprout has been superseded by newer privacy systems and closed to new deposits for years; developers say dropping its outdated technology reduces complexity and security risks. The coins will not be destroyed, and access might theoretically return through a future upgrade, but that is not guaranteed. NU7 is also set to shorten Zcash’s target block interval from 75 seconds to 25 seconds.
In short
- About 12,224 ZEC could become inaccessible.
- Sprout holders must withdraw before block 3,543,405.
- NU7 also aims to make confirmations three times faster.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Retiring Sprout’s outdated transaction system could reduce protocol complexity and security risks, while allowing development to focus on newer privacy technology. Given that Sprout has been closed to new deposits for years, supporters may see the change as a proportionate upgrade, with any future recovery of affected funds left open for later work.
The case against
Making the only withdrawal format for existing Sprout funds invalid could leave owners unable to access substantial holdings despite retaining their keys. Critics may argue that a network upgrade should preserve a path to withdraw legacy funds, or provide a reliable recovery plan, before imposing a change whose consequences for owners may be permanent.