Reward Minting

Definition ∞ Reward minting is the process by which new digital tokens are created and distributed as incentives within a blockchain network or decentralized application. This typically occurs through mechanisms like mining or staking, where participants are rewarded with newly issued tokens for contributing to network security or utility. It serves as a key driver for network participation and growth.
Context ∞ Reward minting strategies are a constant subject of analysis in cryptocurrency news, particularly concerning inflation rates, token distribution fairness, and the sustainability of incentive models. Discussions often focus on the impact of different minting schedules on token value, the potential for large token holders to exert undue influence, and the overall economic health of protocols that rely on this mechanism.