Overview
A block reward is the new coins and fees granted to a miner or validator for producing a valid block. It incentivizes block production and secures the network. The reward schedule determines coin issuance.
How It Works
In proof of work, miners earn newly minted coins plus transaction fees. In proof of stake, validators earn issuance and priority fees. Reward rates often decrease over time, such as Bitcoin's halving schedule.
Why It Matters
Block rewards align network participants with security by paying for honest block production. They determine token supply growth and inflation. Their design is central to tokenomics and network sustainability.
Related Concepts
Block Rewards connect to Miners, Validators, and Tokenomics. They determine Issuance and inflation schedules.