Is the Block Subsidy Considered a ‘Transaction’ Fee?
No, the block subsidy is not considered a transaction fee. The block subsidy is the reward of newly generated cryptocurrency (e.g.
Bitcoin) that is created and awarded to the miner who successfully mines a block. Transaction fees are the amounts voluntarily paid by users to have their transactions included.
The total block reward is the sum of the block subsidy and the transaction fees.
Glossar
Total Block Reward
Composition ⎊ The total block reward's composition is a critical economic factor, consisting of the predetermined block subsidy and the variable component of transaction fees.
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.
Block Reward
Incentive ⎊ A block reward serves as the primary economic incentive for miners or validators to participate in securing a blockchain network.
Transaction Fees
Cost ⎊ Transaction fees represent a quantifiable expense incurred for processing and validating transactions across diverse financial systems, functioning as a critical component of network participation and security.