A Block Rewards Pool refers to a collection of rewards distributed to miners or validators in a blockchain network for validating transactions and adding new blocks to the blockchain. When a new block is created, it often comes with a reward, which can include newly minted coins and transaction fees.
In a mining pool, individual miners combine their computational power to increase the chances of solving a block. When the pool successfully mines a block, the rewards are split among the participants based on their contributed processing power.
This approach allows smaller miners to receive more consistent payouts, rather than experiencing the uncertainty of mining solo. For proof-of-stake networks, a similar concept exists. Validators are rewarded for confirming transactions and maintaining network security.
These rewards are then pooled and distributed among those who participate in the staking process. Block Rewards Pools help to incentivize participation and foster network growth, ultimately contributing to the stability and security of the entire system.
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