Miner subsidy – Halving *

The miner subsidy is the means by which all tokens on the network are initially distributed. The subsidy is paid to compensate early miners for the lack of Transaction fees being paid by users of the network.

For the first 210,000 blocks successful miners can claim a subsidy of 50 bitcoins, however after each subsequent 210,000 blocks, the subsidy drops by half, eventually falling to zero after 32 ‘Halvening’ cycles.

The miner subsidy was never intended to be the primary income mechanism for miners, but instead was a means to both bootstrap investment in the network and to broadly distribute the currency units in a fair and transparent manner.


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Written by Ramon Quesada

Passionate about Blockchain & Bitcoin technology since 2013, Co- Founder of https://avalbit.org, Team Manager in the CoinTelegraph Spain franchise (2016-2017 years) Co. Organizer of the Blockchain Boot camp Valencia 2018, Co. Organizer of the mini Hackathon BitcoinSV Barcelona, in August 2019, current coordinator of the BSV Valencia Meetup. https://telegra.ph/Ramon-Quesada---Links-01-10

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