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What Is the “Block Reward” and How Does It Incentivize Miners?

The block reward is the compensation given to the miner who successfully validates a new block and adds it to the blockchain. It typically consists of newly minted cryptocurrency (subsidy) and the transaction fees from all transactions included in the block.

This financial incentive motivates miners to expend the necessary computational power for network security.

What Are the Two Main Components of a Miner’s Block Reward?
What Is the Incentive for a Miner to Participate in the PoW Process?
How Does the Duration of Staking Affect the IL Compensation Ratio?
What Happens to the Block Reward If a Miner Includes an Invalid Transaction?