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⛏️ Block Reward: how the blockchain rewards those who secure it
For the blockchain to work, miners or validators are constantly working to verify and add new blocks.
But who pays them?
📌 The Block Reward consists of 2 elements:
1. New coins created
With each validated block, new BTC is minted and awarded to the miner.
This is how Bitcoin enters circulation.
2. Transaction fees
All transactions included in the block generate fees.
These fees also go to the miner.
The link to Halving:
Every 4 years, the "new coins" portion is halved.
Eventually, when all 21 million BTC are mined...
Miners will only be compensated with transaction fees.
This is the brilliance of Bitcoin's economic model designed to last for centuries.
📚 Source: Binance Academy
⚠️ Digital assets are volatile. DYOR. This content is not financial advice.
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