How Does the Diminishing Subsidy Impact the Long-Term Security of a Blockchain?

As the block subsidy diminishes due to halvings, the security of the blockchain increasingly relies on transaction fees to incentivize miners. If transaction fees are insufficient, miners may not be adequately compensated for their operational costs, leading to a decrease in the total hash rate.

A lower hash rate makes the network more vulnerable to a 51% attack, posing a long-term security risk if fee volume does not grow.