Validator Revenue

Definition ∞ Validator revenue represents the economic compensation earned by network validators for their role in securing a proof-of-stake blockchain. This income typically includes transaction fees from processed blocks and newly minted cryptocurrency distributed as block rewards. It serves as an incentive for validators to maintain network operations and uphold protocol rules.
Context ∞ The structure of validator revenue is a critical factor in the economic health and security model of proof-of-stake networks. A key discussion involves optimizing revenue streams to ensure sufficient incentives for participation while preventing excessive centralization. Future protocol adjustments often aim to refine the balance between block rewards, transaction fees, and inflation to maintain network stability.