Crypto 101 · Proof of work
Block Rewards and Halvings: How New Coins Are Issued
Abstract
A block reward, or subsidy, is the newly created coin that a miner earns for adding a block. Bitcoin and Litecoin halve it on a fixed interval, so supply growth slows and converges on a cap, while Dogecoin pays a constant amount forever. We explain each schedule, give the numbers from the source code and show the live reward per block.
Keywords: block reward, halving, block subsidy, issuance, Bitcoin halving
1. In plain English
Every block a miner adds pays them a block reward: new coins that did not exist before, plus the fees users attached to the transactions in the block. This is how new coins enter circulation, and it is what pays for the network's security.
On Bitcoin and Litecoin the reward is cut in half at regular intervals, a halving. Early miners earned a lot per block, later miners earn less, and eventually the reward reaches zero and only fees remain. On Dogecoin the reward never halves: it stays a constant 10,000 coins per block.
2. The three schedules
Table 1. How the coins in this guide are issued.
| Coin | Reward | Halving | Cap |
|---|---|---|---|
| Bitcoin | 50 at launch, halved every 210,000 blocks [1] | About every 4 years | Just under 21 million [2] |
| Litecoin | 50 at launch, halved every 840,000 blocks [3] | About every 4 years | About 84 million [4] |
| Dogecoin | Constant 10,000 per block after block 600,000 [5] | None | No cap |
3. Go deeper: why the design matters
A halving schedule is a geometric series: each epoch issues half as many coins as the one before, so the total converges to a limit. A constant reward instead grows the supply linearly, so the percentage growth shrinks over time, as worked out in Dogecoin tokenomics. The recent reward shown live above is the average of the last few blocks' coinbase transactions, and can be slightly above the subsidy because it includes fees.
When the subsidy fades, security depends on fees. Nakamoto's paper anticipated that incentive transitioning entirely to fees once the predetermined number of coins had been issued [6]. Read the full numbers in Bitcoin tokenomics and Litecoin tokenomics.
4. In Scrypt Wallet
Mining payouts arrive as ordinary transactions to your address. The wallet shows them under Activity, and you can convert or send them like any other balance.
References
- Bitcoin Core developers (2009). GetBlockSubsidy (src/validation.cpp). Bitcoin Core source code: the consensus rule for the block subsidy (50 coins, halved every nSubsidyHalvingInterval blocks). https://github.com/bitcoin/bitcoin/blob/master/src/validation.cpp
- Bitcoin Wiki contributors (2010). Controlled supply. Bitcoin Wiki: derivation of the 21 million cap from the halving schedule. https://en.bitcoin.it/wiki/Controlled_supply
- Litecoin Project (2011). chainparams.cpp. Litecoin Core source code: main-net consensus parameters (halving interval 840,000; 2.5-minute target spacing). https://github.com/litecoin-project/litecoin/blob/master/src/chainparams.cpp
- Lee, C. (coblee) (2011). [ANN] Litecoin - a lite version of Bitcoin. Launched!. Announcement thread, Bitcointalk, 9 October 2011. https://bitcointalk.org/index.php?topic=47417.0
- Dogecoin Core developers (2013). GetDogecoinBlockSubsidy (src/dogecoin.cpp). Dogecoin Core source code: a constant 10,000 DOGE per block once the chain passes 6 halving intervals (block 600,000). https://github.com/dogecoin/dogecoin/blob/master/src/dogecoin.cpp
- Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Whitepaper. https://bitcoin.org/bitcoin.pdf
Common questions
What is a halving?
An event, fixed in the protocol, when the block reward is cut in half. Bitcoin halves every 210,000 blocks and Litecoin every 840,000, each about every four years.
Do miners still earn something after the last halving?
Yes: transaction fees. Whether fees alone will secure a network is an open question.
General education, not financial, tax or legal advice. Figures are schematic. Protocol parameters are cited to primary sources and can change; verify against the linked source before relying on them.