Block reward

In plain words

Every new block pays the miner who found it, in two parts. First, brand-new bitcoin — 3.125 coins per block right now. This is the only way new bitcoin is ever made. Second, the fees from every payment in the block. The new-coin part shrinks by half every four years until it reaches zero, and fees are meant to take over as miners' pay.

Why it matters

• It's the security budget: this prize is why miners burn energy honestly.
• Every bitcoin in existence started life as a block reward.
• The handoff from new coins to fees is Bitcoin's biggest long-term question.

Go deeper

• Coinbase transaction
• The halving
• Fees