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Block Reward

What is Block Reward?

The cryptocurrency that a miner receives as payment for successfully validating a new block is referred to as a block reward. Both the block subsidy and the transaction fees make up the block reward. The largest portion of a block reward is the block subsidy, which is made up of newly created currencies. The remaining portion consists of the fees that were paid by the transactions that were part of the block.

The block subsidy in the case of Bitcoin began at 50 BTC and is halved every 210,000 blocks (approximately once every four years). It's known as the Bitcoin halving. In 2012, the block subsidy for Bitcoin was 25 BTC; in 2016, it was 12.5 BTC; and in 2020, it was 6.25 BTC.