Next Zcash(ZEC) Halving Countdown For 2028
Introduction
Zcash (ZEC), a privacy-focused cryptocurrency, follows a halving event similar to Bitcoin (BTC) and other cryptocurrencies. Halving, which occurs approximately every four years, is a crucial event in the life cycle of a cryptocurrency. This article aims to provide a comprehensive technical analysis of the Zcash halving, breaking the event into its essential components and examining its potential impacts on the network, miners, and investors.
1. What is Halving?
- Halving is a protocol-level event that reduces the block reward for miners by 50%.
- The purpose is to control inflation and limit the supply of new coins, increasing scarcity over time.
2. Zcash Halving Schedule
- Zcash's first halving occurred in November 2020.
- The next halving is expected in late 2028.
| # | Event | Block height | Activation date (UTC) | Key changes |
|---|---|---|---|---|
| 1 | Genesis (Sprout) | 0 | October 28, 2016 | Launch of the Zcash mainnet. Introduced zk-SNARK-based privacy, 150-second block target, and an initial reward of 12.5 ZEC per block. |
| 2 | Overwinter | 347500 | June 26, 2018 | Introduced transaction version 3, replay protection, and infrastructure for future upgrades. |
| 3 | Sapling | 419200 | October 29, 2018 | Enabled faster, lighter, and more secure shielded transactions. Introduced new z-address format. |
| 4 | Blossom | 653600 | December 11, 2019 | - Reduced target block time from 150 s to 75 s.- Increased halving interval to 1 680 000 blocks (ZIP-208).- Prepared the network for future upgrades such as Heartwood. |
| 5 | Heartwood | 903000 | July 16, 2020 | Added Coinbase shielded outputs and Flyclient support for lightweight clients. |
| 6 | Canopy + 1st Halving | 1046400 | November 18, 2020 | First halving: block reward reduced 6.25 → 3.125 ZEC.Introduced Dev Fund 2.0 (20 % of block reward dedicated to development funding). |
| 7 | NU5 (Halo Arc) | 1687104 | May 31, 2022 | Transition to the Halo 2 proof system (no trusted setup). Unified Orchard shielded pool introduced. |
| 8 | 2nd Halving | 2726400 | November 23, 2024 | Reward reduced 3.125 → 1.5625 ZEC. No major consensus changes. |
| 9 | (expected) 3rd Halving | 4406400 | ≈ November 2028 | Reward will decrease 1.5625 → 0.78125 ZEC. Expected to occur under current 75-second block spacing parameters. |
3. Technical Details of Zcash Halving
- Zcash uses the Equihash Proof-of-Work (PoW) algorithm.
- The halving is activated at a specific block height, not a fixed date.
- Block rewards are hardcoded in the Zcash protocol.
The Zcash network has gone through several upgrades of consensus. One of the most significant ones, Blossom, was activated on block 653,600 and reduced the block time to 75 seconds. To retain the approximate four-year interval between halvings, the number of blocks in a halving was increased proportionally.
The key technical parameters are:
- Pre-Blossom target spacing: 150 s • Pre-Blossom halving interval: 840,000 blocks
- Post-Blossom target spacing: 75 s • Post-Blossom halving interval: 1 680 000 blocks
- Blossom activation height: 653 600
How the interval is derived
PostBlossomHalvingInterval = floor(840,000 × (150 / 75)) = 1,680,000 blocks
4. Implications for Miners
- Miners receive fewer rewards after the halving, which can affect their profitability.
- Some miners may exit the network if operating costs exceed the reduced rewards.
- Increased competition among miners for the reduced block rewards can lead to higher network security.
5. Impact on Zcash's Price
- Historically, cryptocurrency halvings have been associated with price increases, as the reduced supply meets constant or increasing demand.
- Market sentiment and external factors also play a significant role in price movements.
6. Network Security
- Halving can impact the network's security if many miners leave due to reduced rewards.
- Zcash has a feature called the "Founders' Reward," which allocates a portion of block rewards to the project's development. The impact of halving this aspect should be considered.
7. Halving and Privacy
- The halving does not directly affect Zcash's privacy features, such as shielded transactions.
- However, the overall health of the network, including privacy features, can be influenced by changes in miner participation and network security.
8. Conclusion
- Zcash's halving is a critical event that affects miners, investors, and the overall network.
- While it reduces the supply of new coins and can potentially drive price increases, it also poses challenges for miners and network security.
- The impact of the halving will depend on various factors, including market conditions and miner behavior.
In conclusion, Zcash's halving is a significant event in cryptocurrency, and a thorough technical understanding is essential for all stakeholders. This analysis provides insights into the mechanics of the Zcash halving and its potential implications.
References
- ZIP-208: Shorter Block Target Spacing
- ZIP-206: Blossom deployment
- Zcash source: consensus/params.h, chainparams.cpp