Definition
The block subsidy is the portion of a Bitcoin block's reward that creates new bitcoin according to the network's issuance rules. It began at 50 BTC per block and is reduced by half after each interval of 210,000 blocks. Because accounting uses whole satoshis, the scheduled reductions eventually bring newly permitted issuance to zero. Transaction fees are separate and may still compensate miners after that point. The subsidy is a maximum amount allowed by consensus, not a payment that a central administrator can increase at will. A miner attempting to claim more than the permitted subsidy and fees produces an invalid block. Lost private keys do not cause replacement coins to be issued, and a smaller circulating supply does not alter the schedule. This distinction separates Bitcoin's issuance policy from market supply, accessible holdings, and the total compensation earned through mining.
Source references
References accompanying this glossary entry:
- https://github.com/bitcoin/bitcoin/blob/master/src/validation.cpp
- https://bitcoincore.org/en/doc/30.0.0/rpc/blockchain/getblockstats/
Educational reference, not financial advice. See our financial disclaimer and editorial policy.