Crypto glossary
Block subsidy
The block subsidy is the amount of newly created bitcoin a miner receives for each block, separate from fees; it halves about every four years.
A miner's reward for a block has two parts: the subsidy, which creates new coins out of nothing according to a fixed schedule, and the transaction fees paid by the users included in the block. Both are claimed through the block's coinbase transaction. The subsidy is the only way new bitcoin enters circulation.
It started at 50 BTC per block in 2009 and halves every 210,000 blocks: 25 BTC in 2012, 12.5 in 2016, 6.25 in 2020 and 3.125 since April 2024. Each halving cuts miners' revenue in bitcoin terms overnight, which is why analysts watch hashprice and miner selling around those dates. The schedule produces a total supply just under 21 million BTC, with the last satoshis of subsidy expected around 2140.
The shrinking subsidy raises a long-term question known as the security budget debate: once new issuance is small, will fees alone pay enough to keep miners securing the network? Fees have spiked during busy periods but remain volatile. Other proof-of-work and proof-of-stake chains use different issuance schedules, often without a fixed cap.
Example
In a block that includes 0.15 BTC in fees, the miner collects 3.125 BTC of subsidy plus 0.15 BTC in fees, for a total reward of 3.275 BTC.