# Block Reward **Not to be confused with:** Block subsidy, Transaction fees 1. An amount of [[Bitcoin (blockchain)]] that [[Miner(s)|miners]] earn upon creating a [[Block(s)|block]] (of pending transactions). The reward is equal to the sum of 1) the block subsidy (newly ‘minted’ [[Satoshi|satoshis]]) plus all [[Transaction(s)|transactions]] fees attached to transactions included in that block. The subsidy reward is halved every four years. 2. A block reward is the reward a [[Miner(s)]] gets for solving the [[Cryptographic Hash Function|cryptographic hashing]] problem that verifies [[Transaction(s)|transactions]] and adds a new [[Block(s)|block]] to the [[Blockchain|blockchain]]. This creates incentive for miners to add hash power to the network. For [[Bitcoin (blockchain)]], this block reward is halved every 210,000 blocks created, or roughly every four years. The last [[Halving|halving]] of the Bitcoin block reward was in May 2020, when the reward was cut down from 12.5 BTC per block to 6.25 BTC per block. 3. The [[Coin(s)|coins]] awarded to a [[Miner(s)|miner]] or group of miners for solving the cryptographic problem required to create a new [[Block(s)|block]] on a given [[blockchain]]. 3. Are rewards given to a [[Miner(s)|miner]] which has successfully [[Hash function|hashed]] a transaction block. Block rewards can be a mixture of [[Coin(s)|coins]] and [[Transaction Fee|transaction fees]], depending on the policy used by the [[Crypto (cryptocurrency)|cryptocurrency]] in question, and whether all of the coins have already been successfully [[Mining|mined]]. 5. The amount that [[Miner(s)|miners]] may claim as a reward for creating a block. Equal to the sum of the block subsidy (newly available [[Satoshi|satoshis]]) plus the [[Transaction Fee|transactions fees]] paid by transactions included in the block. Not To Be Confused With: Block subsidy or [[Transaction Fee]]. 6. The reward provided to a [[Miner(s)|miner]] which has successfully [[Hash|hashed]] a block of transactions. Block rewards may be a combination of mining fees and transaction fees, depending on the incentive mechanism used, and whether all the coins have already been successfully [[Mining]]. Currently, the mining reward for the Bitcoin network is 12,5 bitcoins for each block. The [[Bitcoin (blockchain)]] block [[mining]] reward halves every 210,000 blocks, and with the next halving expected in May 2020, the coin reward will decrease from 12.5 to 6.25 [[Coin(s)|coins]]. 6. A form of incentive for the [[Miner(s)|miner]] who successfully calculated the [[Hash|hash]] in a block during [[Mining|mining]]. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of those. 7. An amount of crypto-currency a [[Miner(s)|miner]] receives for processing transactions in a given block. Because creating (or “[[Mining|mining]]”) blocks is so crucial to the security of the Bitcoin network and yet so hard, the [[Bitcoin Protocol|Bitcoin protocol]] includes a mechanism to encourage people to mine: every time a block is added, the miner who found the block is given 12,5 [[BTC]](this number will change at the next halving in 2020) as a block reward. 8. If people are going to be pointing some of their computing power to the [[Bitcoin (blockchain)]] network, then they need to get paid for their work. This is where block rewards come into play. New bitcoins are created every ten minutes, and those bitcoins are rewarded to the Bitcoin [[Miner(s)|miner]] who is able to find the answer to the above mentioned mathematical equations before anyone else. In addition to the block reward, which is cut in half roughly every four years, miners are also rewarded with the [[Transaction Fee|transaction fees]] from all transfers of value that took place since the last block was mined. Without these valuable rewards for [[Mining|mining]], there would be no reason for miners to point computing power to the Bitcoin network, and the network could not be secure without the large amount of computing power needed to attack the network. 9. Payment made to the volunteers who offer their computers to facilitate transactions on a [[Blockchain|blockchain]] network. The payment can be a mix of new [[Coin(s)|coins]] and [[Transaction Fee|transaction fees]]. 10. It is the financial incentive that is provided to a [[Miner(s)|miner]] in lieu of him/her successfully calculating a valid [[Hash|hash]] in a [[Block(s)|block]]. Additionally, the reward also makes sure that crypto miners act in the best interest of the [[Blockchain|blockchain]] rather than trying to hack it. 11. The amount that [[Miner(s)|miners]] may claim as a reward for creating a block. Equal to the sum of the block subsidy (newly available satoshis) plus the transactions fees paid by transactions included in the block. 12. For [[Blockchain|blockchains]] with a native [[Crypto (cryptocurrency)]], miners that produce a block are allowed to allocate a designated number of [[Token(s)|tokens]] to be spontaneously generated and sent to an address of their choosing. This reward serves as compensation for the miner's support of the [[Network|network]] and incentivizes additional [[Miner(s)|miners]] to join. 13. A [[Block(s)]|block] reward is the payment awarded to a [[blockchain]] network [[Miner(s)|miner]] upon successfully validating a new block. Typically paid out in the native asset of its network at a fixed, but regressive rate, block rewards are often the only source of new currency creation on a network. They provide a key element of the incentive structure that keeps blockchain networks operating in a [[decentralized]] fashion. In [[Proof of Work (PoW)]] blockchains like [[Bitcoin (blockchain)]], block validation and block rewards are the remit of miners. In newer models like [[Ethereum (blockchain)|Ethereum]]’s upcoming [[Proof of Stake (PoS)]], the block reward is paid to the collateral staking [[Validator Nodes|validator nodes]]. 15. Blockchains with native [[Crypto (cryptocurrency)]] allow [[Miner(s)]|miners] to allocate a specific number of [[Token(s)|tokens]] for generating spontaneously and sending to desired address. The reward compensates for the miner’s support in building a block and the network alongside incentivizing other miners for joining the network. 17. The reward given to a [[Miner(s)|miner]] after it has successfully [[Hash|hashed]] a transaction [[Block(s)|block]]. Block rewards can be a mixture of [[Coin(s)|coins]] and [[Transaction Fee|transaction fees]]. The composition depends on the policy used by the [[Crypto (cryptocurrency)|cryptocurrency]] in question, and whether all of the coins have already been successfully mined.