How Does the Bitcoin ‘Halving’ Event Impact the Importance of Transaction Fees?

The halving event automatically cuts the block subsidy, the reward of newly minted Bitcoin, by 50% approximately every four years. This direct reduction in the primary revenue source makes the transaction fees, the second revenue source, significantly more important for miner profitability.

Over time, as the subsidy approaches zero, fees are expected to become the sole incentive for miners to secure the network.