How Is the Block Subsidy Created (Monetary Policy)?
The block subsidy is created by the protocol itself as part of the cryptocurrency's defined monetary policy. When a miner successfully mines a block, the protocol includes a special 'coinbase' transaction that generates the new coins and pays them to the miner's address.
This is the only way new coins are introduced into the system.
Glossar
Monetary Policy
Principle ⎊ Cryptocurrency monetary policy refers to the pre-programmed, immutable rules embedded in a protocol that govern the supply, issuance rate, and total cap of the native digital asset.
Block Subsidy
Genesis ⎊ Block subsidy, within cryptocurrency networks, represents the initial allocation of newly minted coins to miners or validators as a reward for processing transactions and securing the blockchain.