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Block Reward

    A block reward is a payment made by a cryptocurrency network to miners for each valid block they mine. The reward amount varies by project but is generally proportional to the amount of work done by the miner and the difficulty of mining the block. Blocks that are more difficult to mine may yield a higher reward. Block rewards are one way for new cryptocurrencies to enter into circulation on many proof-of-work blockchain protocols. For example, Bitcoin’s protocol includes mechanisms that incentivize bitcoin miners to secure the network by validating the data of new blocks with a corresponding block reward. Miners receive a set amount of bitcoin for each validly mined block, which adds transactions onto Bitcoin’s public ledger (known as ‘the blockchain’).