Consensus Node Incentives

Definition ∞ Consensus Node Incentives are the rewards provided to participants who operate nodes responsible for validating transactions and maintaining the integrity of a blockchain network. These incentives encourage honest participation, secure network operation, and proper execution of the protocol’s rules. They are crucial for the economic security of decentralized systems.
Context ∞ The design and adjustment of consensus node incentives are central to a blockchain’s economic security, decentralization, and long-term viability. Discussions around these incentives often arise in news concerning protocol upgrades, network stability, or debates about the concentration of power among validators. Fair and sufficient incentives are necessary for a healthy network.