Block reward sharing refers to the distribution of rewards earned from mining blocks on a blockchain among participants in a network. When a miner successfully adds a block to the blockchain, they receive a reward, typically in the form of newly created coins and transaction fees.

In many scenarios, mining is not done solo. Instead, individuals often join mining pools to combine their computational power. This increases the chances of successfully mining a block since larger pools can solve cryptographic puzzles more quickly. Once a mining pool achieves a successful block, the block reward is divided among all participants based on their contribution to the pool’s total computing power.

The sharing mechanism can vary: some pools use a proportional distribution model, rewarding participants according to the amount of work they contributed, while others might use a pay-per-share or pay-per-last-N-shares strategy. Block reward sharing ensures that even smaller miners can earn rewards without the need for significant resources, promoting a more decentralized and collaborative mining environment.