Definition
The cryptocurrency awarded to a miner or validator for successfully adding a new block to the blockchain. Block rewards are how new coins enter circulation and how network security is incentivized.
Why It Matters
Block rewards are the economic engine of most blockchains. They incentivize honest participation and determine the rate at which new supply enters the market.
Example
After the 2024 Bitcoin halving, miners receive 3.125 BTC as a block reward for each block they successfully mine.
Related Terms
Mining
Bitcoin
Halving
Proof of Work