How Do Transaction Fees Incentivize Miners in PoW?

Transaction fees are small amounts of cryptocurrency attached to a transaction by the sender to prioritize its inclusion in the next block. These fees are collected by the miner who successfully validates and adds the block to the blockchain.

As the block reward decreases over time due to halving events, transaction fees become an increasingly important part of the miner's revenue. This financial incentive encourages miners to continue securing the network.