A block reward is the payment a miner receives for adding a new block: newly created coins plus the transaction fees in that block. It is how new bitcoin enters circulation, and it explains where network fees go. As of September 2026, the new-coin part is 3.125 BTC per Bitcoin block and halves about every four years.
How does a block reward work?
Each new Bitcoin block starts with a special transaction that pays its miner. The payment has two parts: the block subsidy (newly created bitcoin) and the fees paid by the transactions in the block.
The subsidy started at 50 BTC in 2009. Bitcoin’s code cuts it in half every 210,000 blocks, roughly every four years, in an event called the halving. The last halving, at block 840,000 on 20 April 2024, cut it to 3.125 BTC. The next, at block 1,050,000, is estimated for around April 2028, depending on how fast blocks are mined.
Proof-of-stake networks such as Ethereum reward validators instead of miners.
What does a block reward look like in practice?
Illustrative example: as of September 2026, a miner whose block holds 0.02 BTC in fees earns 3.125 + 0.02 = 3.145 BTC. On 28 September 2026, real blocks carried under 0.05 BTC in fees each, so the subsidy was most of the reward.
Fees can jump with demand. Block 840,000 carried about 37.6 BTC in fees, for a total reward of about 40.75 BTC.
Why does it matter when you buy crypto?
The block reward is the only way new bitcoin is created. Because the subsidy keeps halving, total supply stays just under 21 million BTC (see circulating supply).
It also explains network fees: the fee you attach when you send bitcoin goes to the miner who includes your transaction. The Bitcoin white paper describes fees eventually replacing new coins as the miners’ incentive. When you are ready, see the Bitcoin price and payment options.
What are the risks and red flags?
A halving cuts new supply, but it does not set the price. Past performance does not predict future results.
- Be wary of anyone who says a halving means prices must go up.
- Offers of a share of block rewards or fixed daily payouts are a common scam. See cloud mining and how to spot mining scams.
- Network fees change with demand, so check the fee before you send.
Go deeper: read the history of the Bitcoin halving, with every halving date and reward so far.