Definition ∞ Execution Layer Rewards are incentives distributed to network participants for processing and validating transactions on a blockchain’s execution layer. These rewards typically consist of transaction fees, often referred to as gas fees, paid by users to ensure their transactions are included in a block. In some proof-of-stake systems, a portion of newly issued tokens may also supplement these fees. Such compensation motivates validators to maintain network security and operational integrity.
Context ∞ The discussion surrounding Execution Layer Rewards frequently addresses the balance between incentivizing validators and managing transaction costs for users. Key developments include protocol upgrades aimed at reducing gas fees and mechanisms to distribute maximal extractable value (MEV) more equitably. A critical future consideration involves optimizing these reward structures to prevent centralization and enhance network fairness. The design of these incentives directly impacts blockchain economic stability.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
