What Is Block Reward?
A block reward is the amount of newly created cryptocurrency granted to the miner or validator who successfully creates a new block. For Bitcoin, the block reward started at 50 BTC per block in 2009 and halves approximately every four years (210,000 blocks). After the 2024 halving, the reward is 3.125 BTC per block.
How Block Reward Works
The block reward is the primary mechanism for distributing new coins into circulation. It combines with transaction fees to form the total miner revenue. Over time, as block rewards decrease through halving, transaction fees are expected to become a larger share of miner incentives, eventually becoming the sole revenue source when all 21 million Bitcoin are mined (estimated ~2140).
Why It Matters for Traders
Block rewards directly impact the sell pressure from miners. At 3.125 BTC per block with ~144 blocks per day, approximately 450 BTC are created daily — all of which must eventually be sold to cover mining costs. This constant sell pressure is a structural headwind that the market must absorb through new demand. After each halving, this sell pressure halves, creating a supply shock.
