Definition ∞ Crypto rewards are digital assets distributed to users for participating in a blockchain network or decentralized application. These incentives can take various forms, including block rewards for miners or validators, staking rewards for delegators, or tokens distributed for liquidity provision in DeFi protocols. They serve to encourage active participation, secure the network, and distribute protocol ownership. Reward mechanisms are fundamental to the economic models of many digital assets.
Context ∞ News about cryptocurrency projects frequently highlights their crypto rewards programs as a means to attract users and grow their ecosystems. Discussions often focus on the sustainability of these rewards, their impact on token supply, and their role in incentivizing desired network behaviors. Changes to reward structures can significantly influence investor interest and network security.
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