What Is a “Halving Event” and How Does It Affect the Block Subsidy?
A halving event is a pre-programmed reduction in the block subsidy (the reward for mining a new block) by half. This event occurs approximately every four years on networks like Bitcoin.
Its purpose is to control the inflation rate of the cryptocurrency, ensuring a finite supply and increasing scarcity over time. It directly cuts the fixed portion of a miner's revenue in half, increasing the relative importance of transaction fees.
Glossar
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.
Halving Event
Diminution ⎊ The halving event, intrinsic to blockchain protocols like Bitcoin, represents a programmed reduction in block reward ⎊ the incentive miners receive for validating transactions and securing the network.