What Are Block Rewards (Subsidy)?


Jake Morr


August 25, 2023

Block Reward refers to the combined sum miners receive for adding a new block to the Bitcoin blockchain, comprising both the mining subsidy (newly minted Bitcoin) and transaction fees from that block. Initially set at 50 BTC, the mining subsidy halves every 210,000 blocks, roughly every four years, in an event called "halving." As this subsidy decreases, transaction fees will constitute a more significant part of the total reward, ensuring miners remain incentivized even as the subsidy reduces. The subsidy introduces new Bitcoin into circulation and motivates miners to submit valid blocks. This reward is housed in a special "coinbase" transaction within each block, which miners can access after a 100-block delay. When all 21 million Bitcoins are mined, block rewards will rely solely on transaction fees.

The Bitcoin Rabbit Hole 🕳️ 🐇

Money is technology that allows for the exchange of value through time & space.

Don't understand Bitcoin? I wrote this article to cover the basics.

Back To Top