What is Block Reward?
A block reward is the cryptocurrency that miners earn for validating a new block successfully.
Understanding Block Reward
The makeup of a block reward includes two components: the block subsidy and the transaction fees. The block subsidy primarily consists of newly generated coins and makes up most of the block reward. The rest comes from the fees associated with the transactions that the block includes.
Since the majority of a block reward consists of the block subsidy, it’s common for people to conflate discussions of the block reward with the block subsidy itself. Hence, in everyday language, the term ‘block reward’ often overlooks the transaction fees involved.
Read related articles:
Disclaimer
In line with the Trust Project guidelines Please remember that the content on this page should not be regarded as legal, tax, investment, financial, or any other type of advice. Always invest only what you can afford to lose, and consult a qualified financial advisor if you’re uncertain. We recommend checking the terms and conditions as well as the help resources provided by the advertiser or issuer. MetaversePost strives for reliable and impartial reporting, but market circumstances can shift without prior notice.
