Within the context of ETH 2.0, I understand that new ether issuance is given to stakers who propose a new block. I also understand that stakers that verify that any new proposed block follows the rules also gets ether as a reward (proportional to the ether they have staked).

But where does the ether given to validators come from? Is this new ether that has been created by the protocol?

1 Answer 1


The new Ethers given to validators as a compensation for their work in securing the network is created by the protocol. Is it considered new Ether as it's new Ethers that are being issued.

There are various changes that happened and that are planned that will eventually make ETH a deflationary currency. Here are some resources to learn more about that monetary policy:

  • Thanks for the clear response and additional resources. A related question is on transaction fees. I know that some of the user transactions fees go to miners. Are these transaction fees going to miners "new ether" or is it old ether being given to miners as part of tips or other fees? Aug 29, 2022 at 15:52
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    Transactions tips (fees minus burnt) is currently sent to the miners. Post-merge, they will be sent to validators since validators will be the ones securing the network and replacing miners. Transactions fees is something transaction users/creators need to pay for using the network. The transactions fees are not created out of nothing like rewards are. The transactions fees are deducted from the transactions users/creators wallet.
    – Rémy Roy
    Aug 29, 2022 at 16:27

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