How Do Transaction Fees Contribute to Miner Revenue and Profitability?

Transaction fees are paid by users to have their transactions included in a block by a miner. These fees supplement the block reward and are a crucial component of miner revenue.

As block rewards decrease over time due to halving events, transaction fees are expected to become the primary source of income for miners. In periods of high network congestion, transaction fees can increase significantly, providing a substantial boost to miner profitability and incentivizing them to prioritize transactions with higher fees.