Bitcoin Halving: 75% of Miner Rewards Now Come from Transaction Fees

Bitcoin Halving: 75% of Miner Rewards Now Come from Transaction Fees

The fourth Bitcoin halving occurred on April 20th, 2024, and a recent report from investment firm Bernstein analyzed the impact on miner rewards. The report found that on the day of the halving, the Bitcoin network paid miners approximately $107.75 million in rewards, with $80 million (or 75%) of that coming from transaction fees. This significant increase in transaction fees is largely due to the launch of the Lunaswap protocol, which occurred at Block 840,000, the same block at which the halving took place. Lunaswap is a decentralized exchange that allows users to trade Bitcoin and other cryptocurrencies without an intermediary. Over 7,000 Lunaswap tokens have been issued thus far, with the most significant holder being 'SATOSHI NAKAMOTO.' While Bitcoin transaction fees have since settled down from the excessive enthusiasm on the day of launch, the market potential for altcoins based on Bitcoin is worth noting. Lunaswap may have been launched as a meme coin, but it demonstrates the potential for altcoins with utility to be successful. Going forward, the report explained that "15% of BTC mining rewards will come from network transaction fees." This is a significant change from the previous halving, where only 10% of miner rewards came from transaction fees. Previously on April 22, 2024, "According to The Block, in a recent report, investment firm Bernstein analyzed that "on the day of the fourth halving on the 20th (local time), the Bitcoin network paid approximately $107.75 million to miners as a reward." The report explained that "based on Glassnode data, approximately $80 million or 75% of the $100 million plus in miner rewards that occurred on the 20th came from transaction fees." This appears to be largely due to the Lunaswap protocol, which was launched at Block 840,000, the block at which the halving occurred. According to Lunaswap explorer Uniswap, over 7,000 Lunaswap tokens have been issued thus far, with the most significant holder being 'SATOSHI NAKAMOTO.' While Bitcoin transaction fees resulting from the excessive enthusiasm on the day of launch have since settled down, the market potential for altcoins based on Bitcoin is worth noting. Lunaswap may have been launched as a meme coin, but over time, altcoins with utility may be launched. Going forward, "15% of BTC mining rewards will come from network transaction fees," the report explained."