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Bitcoin Incentive, Subsidy, Reward,..? What should we use?
269 sats \ 3 comments \ @fedelang 26 Oct 2023 bitcoin
Trying to find the right expression to refer to new coinbase, fee and the combination of both.
WP mentions distinctively "incentive" and "fee" but online I find both subsidy and reward used like if both terms mean the same thing while its confusing for me when onboarding to use the expressions right.
What is the consensus here?
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3 sats \ 0 replies \ @nullama 27 Oct 2023
The whitepaper defines it as incentive:
6. Incentive
By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network, and provides a way to initially distribute coins into circulation, since there is no central authority to issue them.
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The incentive can also be funded with transaction fees
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Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free.
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10 sats \ 0 replies \ @nullcount 27 Oct 2023
The coinbase (newly created coins) are a subsidy because the protocol is giving "financial assistance" to miners at the expense of inflation.
The fees are just fees.
Together, the block subsidy and transaction fees make up the mining reward that miners receive as revenue.
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0 sats \ 0 replies \ @k00b 26 Oct 2023
Revenue?
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