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Mining

What Is a Block Reward? Coinbase Rewards & Fees Explained

A block reward is the payment a miner receives for adding a valid block to the chain — newly issued coins (the subsidy) plus the transaction fees in that block.

Key takeaways

What a block reward includes

When a miner finds a valid block they can include a special first transaction, the coinbase transaction, paying themselves. Its amount is the block subsidy (newly created coins under the chain's issuance rules) plus all transaction fees from the block. It's how new coins enter circulation and how miners are paid for securing the network.

Different chains, different rules

Reward sizes change over time, so check the current figure rather than relying on a remembered number.

From block reward to miner income

Expected daily income ≈ (your hashrate ÷ network hashrate) × blocks per day × reward per block × price. In pool mining, the pool splits rewards according to its payout scheme and takes a fee, so what you receive can differ from the raw estimate.

Verifying rewards

Each block's coinbase transaction is public. You can inspect a recent block on the coin's block explorer to see the reward paid — which is also how calculators derive recent miner rewards.

Caveats

Coinbase rewards typically can't be spent until they have matured for a number of blocks, and a miner's realized income depends on pool rules, luck and price movement.

Rewards and payout timing

Even after a block is found, the reward is not instantly spendable: coinbase outputs typically must mature for a fixed number of blocks first, and a pool then pays participants on its own schedule. So there can be a gap of hours or days between a block being found and coins arriving in your wallet. Check the pool's payout history and the block explorer if a payout seems late.

Example

A pool finds a Dogecoin block and receives the block reward. It then distributes that reward to participants according to their contributed shares, after its fee.

Formula Expected daily reward ≈ (your hashrate ÷ network hashrate) × blocks per day × reward per block

Put it into practice

Receive rewards where you control the keys

Block rewards and pool payouts end up at whatever address you give. Scrypt Wallet gives you receive addresses for Litecoin, Dogecoin and the Scrypt family in one non-custodial wallet.

Get a payout address Get Scrypt for Android

Frequently asked questions

Do block rewards include transaction fees?

Yes. The miner collects the subsidy plus the fees from all transactions in the block.

What happens when the subsidy runs out?

On capped chains, miners eventually rely on fees. Some chains, like Dogecoin, keep a constant per-block issuance.

How do I see the current reward?

Check a recent block's coinbase transaction in a block explorer, or use the Scrypt mining calculator, which shows recent miner rewards.

Related terms

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Written by the Scrypt Wallet team · Updated 2026-09-29. General education, not financial, tax or legal advice.