## The Continuous Reduction of Block Reward in Bitcoin

Do you know why the reward that miners receive is always decreasing? It all started with Bitcoin, which was rewarded with 50 BTC for each new validated block. Approximately every 210,000 blocks, around ( about 4 years ), this value is halved through a mechanism called halving.

### How the Reward that Motivates Miners Works

The block reward consists of two main elements. The first is the block subsidy, which consists of newly created coins and represents the largest portion of this compensation. The second element comes from the transaction fees paid by users who had their operations included in that specific block.

When a miner successfully validates a new block, they receive this combination of subsidy and fees. Since the subsidy accounts for the majority, many people use "block reward" and "block subsidy" as interchangeable terms in everyday conversation.

### The History of Reductions: How the Reward Decreased Over the Years

The trajectory of Bitcoin clearly shows this dynamic. In 2012, the subsidy decreased from 50 BTC to 25 BTC. Four years later, in 2016, it fell to 12.5 BTC. The most recent reduction occurred in 2020, when it reached 6.25 BTC.

### Understanding the Coinbase Transaction: Where Coins Are Born

Newly generated coins come from a special type of transaction called a coinbase transaction. This transaction is typically the first to be added to a block and works in a unique way: it generates coins "out of nothing," as it has a blank input, unlike normal transactions that need to have a defined source.

To adequately reward you, the system is designed specifically to recognize the miner's work through this mechanism, ensuring that your contribution to the validation and security of the network is always compensated in a structured manner.