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▲ Zcash (ZEC), Cryptocurrency Mining/AI Generated Image ©
As Zcash (ZEC) surged 143% in just one month, a key governance vote that will determine the future coin issuance rate and network performance will conclude on September 14. However, an analysis suggests there is no need to rush into buying before the vote, as the maximum supply of 21 million units will be maintained.
According to investment media outlet The Motley Fool on September 12 (local time), Zcash rose 143% in the 30 days leading up to September 10. At the same time, holders are voting on five proposals that will determine the content of Network Upgrade 7 (NU7), the next major upgrade. Among these, three directly affect the issuance method and supply rate of new ZEC, as well as block creation time, with voting ending on September 14.
The first and most notable proposal is whether to maintain the halving mechanism, which reduces mining rewards by half approximately every four years, similar to Bitcoin (BTC). The alternative is to gradually lower the rate of new issuance instead of a sudden reduction in supply at a specific point, as seen with halving. Even if halving is abolished, Zcash's maximum supply will remain at 21 million. However, the media explained that moving away from a Bitcoin-like halving-centric market cycle could reduce supply shocks and lower price volatility.
The second key proposal determines when ZEC, previously excluded from circulation, will be reintroduced as mining rewards. The options are February 2027 (the earliest possible date if the first proposal passes), February 2027 regardless of the first proposal's outcome, or February 2031. If 2031 is chosen, the supply released into the market until then would be relatively more restricted. The fourth proposal involves shortening the mandatory waiting time between blocks from the current 75 seconds to 25 seconds, which, if passed, could significantly increase network processing speed.
The voting results will determine the scope of NU7, and developers will finalize the approved features by September 30. At the time of writing, Zcash was trading at $1,151.43, with a 52-week range of $47.23 to $1,293.92, and a market capitalization of $19 billion. The Motley Fool assessed that a 143% surge in the past month alone is no reason to rush into buying or, conversely, to avoid investment.
It is particularly important to consider long-term investment logic rather than short-term price movements around September 14. The explanation states that Zcash's core supply policy, a maximum cap of 21 million units, will be maintained regardless of this vote, so there is no decisive reason to buy before the vote. The media suggested that Zcash could be considered if one intends to invest in the growth of privacy technology that shares some characteristics of Bitcoin, but also noted that this governance vote is a matter to pay attention to, not a reason to rush into investment.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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