Halving history: How Bitcoin fees support miner as reward decline

Quick Take

The Bitcoin ecosystem is characterized by a dynamic interplay of mining fees and block rewards, which constitute miners’ total revenue.

Our data analysis provides insights into the average fee per block during each halving period.

During the first halving from Jan. 3, 2009, to Nov. 28, 2012, the average fee per block was approximately 0.367 BTC, accounting for 5.17% of miner revenue.

During the second halving period, Nov. 28, 2012 – July 9, 2016, the average fee per block decreased to approximately 0.040 BTC, contributing a minimal 0.08% to miner revenue.

The third halving period, July 9, 2016 – May 11, 2020, saw an average fee per block increase to 0.185 BTC, representing 0.73% of miner revenue.

Interestingly, from the third halving to the present, the average fee per block has surged to 0.776 BTC, making up approximately 5.29% of miner revenue.

In the aggregate analysis of all Bitcoin halvings, the average fee per block stands around 0.35 BTC or 2.5% of total miner revenue from fees.

These figures highlight how mining fees adjust with each halving to ensure miner incentivization remains stable even as block rewards diminish.

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