Block Reward

The Block Reward is the compensation, consisting of newly minted cryptocurrency and collected transaction fees, that a blockchain protocol automatically awards to the miner or validator who successfully adds the next valid block of transactions to the chain. This essential economic incentive mechanism is designed to secure the network by motivating participants to expend computational power (in Proof-of-Work systems) or stake capital (in Proof-of-Stake systems) to validate and confirm transactions.