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What counts as a Bitcoin block reward?
The reward has two parts: the block subsidy, newly created bitcoin allowed by consensus rules, and the transaction fees attached to transactions included in the block. Together they are called the block reward. The subsidy changes through scheduled halvings; fees vary from block to block. See the Bitcoin Developer Reference for the terminology and consensus context.
The block’s coinbase transaction collects the reward. Its outputs cannot be spent for at least 100 blocks, a maturity rule that helps avoid spending proceeds from a block that later becomes stale. The Bitcoin Developer Guide describes this rule.
How does a pool split rewards?
Miners in a pool contribute hash power toward finding a block. The pool typically sets a target easier than Bitcoin’s network target and asks miners to submit qualifying results called shares. A share demonstrates contributed work even when it is not strong enough to produce a valid network block. If the pool finds a block, the pool receives the block proceeds and uses its payout system to distribute a portion to participating miners, commonly in relation to the shares they submitted.
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The Bitcoin Developer Guide gives a simplified example: if the pool target is 100 times easier than the network target, an average of 100 shares would be needed for a successful block. Under that illustration, the pool could pay 1/100 of its payout per share. This is an explanatory model, not a universal pool formula, guaranteed return, or promise that a miner will receive a fixed amount for each share. Actual terms depend on the pool’s rules. Read the guide’s mining explanation for the share mechanism.
Solo mining versus pooled mining
| Approach | How proceeds are received | Payout pattern |
|---|---|---|
| Solo mining | The miner keeps the proceeds of a block they find. | Higher variance: payments may be larger but can take longer to arrive. |
| Pooled mining | The pool receives block proceeds and allocates payouts under its own terms. | Work and proceeds are shared among participants, generally producing smaller, more frequent payments than solo mining. |
Pooling changes the timing and distribution of mining proceeds; it does not change the Bitcoin consensus rules or create a separate protocol reward. Nodes reject blocks that violate those rules, including blocks that claim an invalid reward, as explained in the Bitcoin FAQ.
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What to compare in a pool’s payout terms
There is no single payout split that applies to every pool. Before joining, check the pool’s current terms for:
- Payout method: how accepted shares and found blocks translate into miner payments.
- Fees: what the pool charges and how the fee is calculated.
- Fee treatment: whether and how transaction fees from blocks are included in participant payouts.
- Variance: how the method handles fluctuations in the pool’s block finds and in an individual miner’s contributed work.
Pool-specific terms can change, so consult the pool’s own current documentation rather than assuming that the example above describes its system. Binance Pool’s explanation of earnings calculations illustrates that payout details are service-specific: How to Calculate Mining Earnings on Binance Pool.
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