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What is a block reward

A block reward is the reward given to a participant in a blockchain network for successfully creating a new block.

The reward is typically paid in the network’s native cryptocurrency and serves as an economic incentive that encourages participants to secure and maintain the blockchain.

Block reward explained simply​

In simple terms, a block reward is a payment for the work of verifying transactions and adding a new block to the blockchain.

Depending on the consensus mechanism, the reward is received by:

How block rewards work​

When a new block is successfully added to the blockchain, the network automatically issues a reward to the block creator.

The reward usually consists of two parts:

  • newly created coins
  • transaction fees included in the block

Structure of a block reward​

A block reward may include:

  • base issuance of new coins
  • transaction fees paid by users

Example of a block reward​

In the Bitcoin network, the block reward is reduced by half approximately every four years. This event is called the Bitcoin halving.

Originally, the reward was 50 BTC per block, but as of early 2026 the reward is 3.125 BTC.

Where block rewards are used​

Block rewards are used in many blockchain networks, including:

FAQ​

What is a block reward?​

A block reward is the payment given to a miner or validator for creating a new block.

What does a block reward consist of?​

It usually consists of newly issued coins and transaction fees included in the block.

Why does the block reward decrease?​

In some blockchains, reducing the block reward helps control the issuance of new cryptocurrency.