To compensate the miner who could solve the PoW as the first one, they will receive some coins as a reward for keeping them motivated due to the costs related to mining process (electricity and hardware).

Does this reward include both following parts?

  1. Newly minted coins.
  2. Transactions fees included in winner's block.

If yes, the second part seems logical and the coins can be provided simply through the account of the participants who submitted the transactions.

However, concerning the first part i.e. "newly minted coins",

(a) What is the reason to add this complementary reward?

(b) How are those new coins minted? And how to calculate the amount of those new coins?

  • It is 2. block reward + transaction fees. For a) empty blocks also contribute to network security. Last question is answered here ethereum.stackexchange.com/questions/63299/…. – Ismael Mar 2 '20 at 15:06
  • @Ismael , Thanks, I understand empty blocks also can help for the network security, but it can be considered only when a new empty block is created (in which there is no transactions fees); however, when almost always new blocks include new transactions paying fees, this complementary reward still is necessary? Thanks – Questioner Mar 2 '20 at 15:15
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    It is reasonable to have block rewards in early stages when you do not have enough transactions to support miners. In the last forks the reward has been decremented from 5 ethers to 3 and now it is 2. It is expected for them to get lower in the future and perhaps they will disappear with the switch to PoS. – Ismael Mar 2 '20 at 18:12
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    For b), miners include in the block they are mining a transaction (called « coinbase »). The winning miner receives the reward on the address he specified. – clement Mar 2 '20 at 19:16

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