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Block Reward

A block reward is the cryptocurrency incentive given to a miner or validator for successfully creating and adding a new block to the blockchain. It typically consists of newly minted coins plus the sum of all transaction fees included in that block. Block rewards are a core mechanism for distributing new coins and incentivizing network security. On Bitcoin, the block reward is halved approximately every four years in an event known as the halving.

Example

After the 2024 Bitcoin halving, the block reward dropped from 6.25 BTC to 3.125 BTC per block, reducing the rate of new coin issuance.