Block Reward
The total BTC a miner receives for finding a block: currently 3.125 BTC block subsidy plus all transaction fees included in the block.
What is the Block Reward?
The block reward is the total amount of BTC earned by the miner (or pool) that successfully mines a new block. It consists of two components: the block subsidy (newly created BTC) and the transaction fees (fees paid by users for their transactions to be included in the block).
Block Reward Components
| Component | Current Value | Trend |
|---|---|---|
| Block subsidy | 3.125 BTC | Decreases every halving |
| Transaction fees | Variable (0.1-2+ BTC) | Depends on network demand |
| Total block reward | ~3.25-5+ BTC | Subsidy shrinks, fees grow |
The block subsidy is fixed between halvings and is the primary source of new BTC entering circulation. Transaction fees vary based on network congestion -- during busy periods like Ordinals inscriptions or market volatility, fees can exceed 1 BTC per block.
How the Block Reward Reaches Miners
The block reward is paid through the coinbase transaction, the first transaction in every block. In pool mining, this reward goes to the pool's address. The pool then distributes it to miners according to the payout method (FPPS, PPLNS, PPS+, etc.), minus the pool's operating fee.
Block Reward History
| Period | Block Subsidy | Halving Block |
|---|---|---|
| 2009-2012 | 50 BTC | Genesis |
| 2012-2016 | 25 BTC | 210,000 |
| 2016-2020 | 12.5 BTC | 420,000 |
| 2020-2024 | 6.25 BTC | 630,000 |
| 2024-2028 | 3.125 BTC | 840,000 |
The Shift from Subsidy to Fees
As the block subsidy decreases with each halving, transaction fees are expected to become an increasingly important component of the total block reward. This transition is fundamental to Bitcoin's long-term security model -- eventually (around the year 2140), the subsidy will be negligible and miners will rely entirely on transaction fees to sustain operations.
For current miners, this means paying attention to both components. Pools using FPPS include estimated fees in every share payment, while PPLNS and PPS+ pools pass through actual fee revenue when blocks are found.