Definition ∞ A Proof of Work Reward is the incentive given to miners for successfully validating and adding new blocks of transactions to a blockchain secured by a Proof of Work consensus mechanism. This reward typically consists of newly minted cryptocurrency and transaction fees. It compensates miners for the computational effort expended in solving cryptographic puzzles. The reward mechanism secures the network by incentivizing honest participation.
Context ∞ The concept of Proof of Work Reward is fundamental to understanding the economics and security of early blockchain networks like Bitcoin. Discussions often involve the decreasing block rewards over time due to halving events and the increasing reliance on transaction fees for miner compensation. While many networks are transitioning to Proof of Stake, the historical role and economic implications of Proof of Work Rewards remain a significant area of study in digital economics.
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