Glossary

Halving

Plain-language definition Crypto glossary

Key takeaways

A halving is a scheduled event that cuts a proof-of-work network's block reward in half, reducing the rate at which new coins are created.
After a fixed number of blocks have been mined, the reward paid to miners drops by 50% automatically, and over many halvings the new-supply rate trends toward zero, approaching a fixed maximum supply.
Halvings make a coin's issuance transparent and disinflationary by design, and they gradually shift miners' revenue away from block rewards toward transaction fees.

Definition

A halving is a scheduled event, built into some proof-of-work blockchains’ code, that cuts the block reward paid to miners in half. Bitcoin’s protocol triggers a halving roughly every four years (every 210,000 blocks), a mechanism designed to slow the rate at which new coins enter circulation over time until the maximum supply is reached.

Why it matters

Halvings reduce the rate of new supply, which is one factor market participants watch, though price outcomes around past halvings have varied and are influenced by many other conditions at the time. It is a mechanical, scheduled change to issuance, not a guarantee about future price direction.

Example

Bitcoin’s block reward has stepped down several times since the network launched, following its coded schedule. See our entry on mining for how the block reward is earned, and current data on our Bitcoin page.

This is educational information, not financial advice. Coingsty does not recommend buying or selling any asset.

FAQ

Frequently asked questions

Why do halvings happen?

Halvings are built into a proof-of-work protocol to enforce a predictable, decreasing supply schedule. By cutting the block reward in half after a set number of blocks, the network steadily reduces how fast new coins are created and approaches its fixed maximum supply.

How does a halving affect miners?

Each halving cuts the block-reward income miners earn for adding new blocks. Over time this gradually shifts miners' revenue away from block rewards and toward the transaction fees users pay.

What does disinflationary mean for a coin with halvings?

Disinflationary means the rate at which new coins are issued slows down over time, even though some new supply is still created. This contrasts with currencies whose supply can be expanded at will, and it is how a capped network approaches its maximum supply.