What is Block Reward?

A block reward is the payment awarded for successfully validating a new block. Typically paid out in the native coin of a network at a fixed, but regressive rate, block rewards are often the only source of new currency creation. They provide a key element of the incentive structure that keeps blockchain networks operating and secure. In Proof-of-Work (PoW) blockchains like Bitcoin, block validation and block rewards are the remit of miners. For blockchains that utilized Proof-of-Stake (PoS) consensus models (Cardano, Algorand, Ethereum Consensus Layer), the block reward is paid to those that stake the native network cryptocurrency.