Overview
Block rewards provide the primary incentive for participants to secure the network. They typically consist of two parts: newly minted coins (subsidy) and transaction fees paid by users.
Components
- Block Subsidy: New coins created by the protocol (e.g., 6.25 BTC).
- Transaction Fees: The sum of all fees from transactions included in the block.
Halving
In some networks like Bitcoin, the block subsidy is reduced by half at regular intervals to control inflation and create digital scarcity.