A November 7 mainnet snapshot puts the historical seed at 99.7% of the reserve, with 1.12 ZEC accumulated under NU7’s fee rules.

📊 Zcash: The new security fund is "99.7% old money"—what’s the truth?

📊 Official news:

• NSM fund balance: 369.7 ZEC

• 99.7% of it (368.58 ZEC) comes from old subsidies and fees (before NU6)

• New contribution (from NU7 fees): just 1.12 ZEC

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🔍 What’s happening?

✅ NU7 directs 60% of transaction fees to the fund

✅ Goal: Fund future mining rewards (after 2031)

✅ "Old money" is just an accounting measure to give the fund a positive starting balance

📊 Why does this matter?

✅ The fund is still in its early stages (just 1.12 ZEC from new fees)

✅ Its success depends on continued network use

⚠️ Not a sell signal—just an accounting clarification

💡 What does this mean for traders?

✅ The news is not negative for ZEC

✅ Focus on price and technical analysis

📊 NU7 also froze 12,224 ZEC in the old Sprout pool ($16 million)

$ZEC

ZEC
ZEC
1,265.94
-3.79%

📊 What exactly is happening?

  • The mechanism: The NU7 update (activated on November 6) redirects 60% of transaction fees from every block to the NSM fund, instead of sending all of them to miners.

  • Goal: This fund is designed to use these funds for future mining rewards (which decrease with each halving), and to start reinjecting them into the market from block 8,939,664 (expected around 2031).

  • "Old money": The 368.58 ZEC was already on the network from old subsidies and fees (before NU6) that miners had not withdrawn. The new update simply "credited" it to the fund’s accounts so it could start with a positive balance.

🔍 Why does this news matter?

  1. Expectations vs. reality: The headline saying "99.7% old money" may look concerning, but it’s really just accounting. The fund is still in its early stages, and its actual contribution from new fees is only 1.12 ZEC so far. This means the fund’s future success depends on continued network use and fee payments over the long term.

  2. Connection to "Sprout" (frozen funds): The same NU7 update froze 12,224 ZEC (worth ~$16 million) in the first privacy pool (Sprout) because v4 transactions are now prohibited. The two news items are related, and both reflect a "cleanup" of old network remnants.

  3. Not a sell signal: This news is not negative for ZEC. It’s simply an accounting clarification about the nature of the fund. The price moved in line with the market, and ZEC was trading at around $1,254 at the time of the update.

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