GlossaryBeginner
Block Reward
Newly created cryptocurrency paid to whoever successfully adds the next block.
A block reward is an amount of newly issued cryptocurrency given to the participant who successfully validates and adds the next block to the chain, as compensation for the resources they contributed to securing the network.
Block rewards are one of the main ways new units of a cryptocurrency enter circulation, alongside any transaction fees included in that block.
Examples
- Bitcoin's block reward decreases over time through periodic halvings.
- A block reward combined with transaction fees makes up a miner or validator's total earnings for that block.