What's a block reward, you ask? Good question and we've got the answer:
Protocols need to provide incentives for distributed volunteer users to discover new blocks in order to secure the network and ensure it continues to operate. Because no central administrator watches over and all other cryptocurrencies, block rewards serve as the primary financial incentive for people to participate in the network.
As mentioned, block rewards also serve as the exclusive issuance system for releasing newly minted coins into circulation. These are given to each successful validator that discovers or proposes new blocks. Sometimes, these rewards are fixed, meaning the same number of tokens are given as block rewards every time, while others gradually decrease the number of coins given as block rewards over time.‘’ roughly every four years, or 210,000 blocks.
Finally, block rewards are not always denominated in the same tokens being transacted on its blockchain. Stablecoins are a common example of this. In order to maintain a steady exchange rate against fiat currency, these protocols carefully control token supply. Therefore, they often reward their miners with a different native token.
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