Block reward
Block reward: A block reward is what a blockchain pays the miner or validator who adds a new block. It usually has two parts: newly created coins, often called the block subsidy, and the transaction fees from the transactions in that block. Block rewards pay for network security and are how many cryptocurrencies release new supply.
The two parts of a block reward
The subsidy is new coins written into existence by the protocol. The fees come from users who paid to have their transactions included. On Bitcoin, the winning miner claims both in a special first transaction in the block, as the Bitcoin developer documentation explains. When the network is busy, fees can make up a larger share of the reward.
How the Bitcoin block reward changes
Bitcoin cuts the subsidy in half every 210,000 blocks, roughly every four years, in an event called the halving. The subsidy started at 50 BTC in 2009 and has been 3.125 BTC per block since the April 2024 halving. This schedule is why the total supply can never pass 21 million coins.
Block rewards on proof of stake networks
On proof of stake chains such as Ethereum, validators earn rewards for proposing and attesting to blocks instead of solving puzzles. Issuance rules differ between networks, and some burn part of each fee, so the net change in supply depends on network activity, not a fixed timetable.
Why investors watch block rewards
Block rewards set how much new supply reaches the market and how much miners or validators earn. A falling subsidy squeezes less efficient Bitcoin miners, which can show up in mining activity and hash rate. Our Bitcoin halving explainer covers how investors think about the four-year schedule. Past halvings are not a guarantee of future price moves.
Frequently asked questions
What is the current Bitcoin block reward?
The Bitcoin block subsidy has been 3.125 BTC per block since the April 2024 halving, plus the transaction fees in each block.
What happens when all bitcoin is mined?
The subsidy is expected to reach zero around the year 2140. After that, miners would be paid by transaction fees alone.
Is a block reward the same as a staking reward?
They are related. Both pay for securing a network. Block reward is the usual term for what miners earn on proof of work chains, while staking rewards go to validators and the people who stake with them.