Zcash News Today: Development Team Proposes Dynamic Fee Model, ZEC Surges 13% Against the Trend

Zcash (ZEC) has defied the overall market downturn, surging nearly 14% in the past 24 hours. The core driver behind this rally is a new dynamic fee model proposal from the development team, aimed at improving network efficiency, alleviating congestion, and enhancing user privacy and cost experience.

The proposal, put forward by Shielded Labs, suggests the network abandon its long-standing fixed fee mechanism in favor of a dynamic structure based on the median transaction. Currently, the fixed fee is 1,000 zatoshi, but surges in demand have led to abnormal fees, network congestion, and overloaded shielded wallets. The new model will calculate fees based on typical transaction activity over the past 50 blocks, using “synthetic comparable objects” to simulate stable loads, making fees more predictable and more resistant to spam attacks.

Currently, about 30% of ZEC is in shielded status. Developers believe that to further attract new users and institutions, network efficiency must improve and adapt to the extreme circumstances brought by price volatility. In the past, users have suffered high transaction costs due to failures in the fee mechanism, so the industry generally sees this upgrade as necessary.

Meanwhile, institutional adoption of Zcash is also strengthening. The Zcash Treasury Fund launched by the Winklevoss twins has accumulated 200,000 ZEC, valued at over $80 million, since last November, with the goal of eventually holding 5% of the circulating supply. Another treasury institution, Reliance Global, has shifted its entire digital asset portfolio to ZEC, highlighting the continued growth in institutional preference.

Beyond capital allocation, regulatory developments have also been positive. Grayscale has filed with regulators to convert its Zcash Trust into a spot ETF, enabling it to track the CoinDesk price index. If approved, this would mark a major breakthrough for privacy coins. Additionally, the SEC has invited Zcash founder Zooko Wilcox to participate in a roundtable on “Privacy and Financial Surveillance” on December 15, once again raising Zcash’s profile in policy circles.

Although analysts such as Max Keiser and Samson Mow previously held bearish views on ZEC, predicting a possible price drop to $55, the acceleration of potential ETF approval, increased institutional holdings, and the dynamic fee model have shifted market sentiment to a more positive outlook for Zcash’s technology and ecosystem.