Block reward

The new coins paid to whoever adds a block to a blockchain.

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What is a block reward?

A block reward is the amount of new cryptocurrency paid to the miner or validator that adds a new block to the chain. It is the main incentive for securing the network.

How it works

On networks like Bitcoin, the reward is made up of newly created coins plus the fees from the transactions in the block. The new-coin portion reduces over time through events called halvings.

Related terms

When one party controls most of a network’s mining or staking power.

A batch of transaction data recorded on a blockchain.

The first cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto.

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