Mining reward refers to the compensation that miners receive for verifying and adding transactions to a blockchain. This process involves solving complex mathematical puzzles to secure the network and maintain its integrity. When a miner successfully completes a block, they are rewarded with a certain amount of cryptocurrency. This reward typically consists of two components: the newly created coins (or tokens) and the transaction fees collected from the transactions included in the block. The mining reward serves multiple purposes. It incentivizes miners to dedicate their computational resources to the network, ensuring its security and functionality. Additionally, the issuance of new coins at a predetermined rate helps regulate the supply and demand dynamics of the cryptocurrency. Over time, many cryptocurrencies decrease mining rewards through mechanisms such as halving events, where the reward is cut in half after a set number of blocks are mined. This gradual reduction aims to create scarcity and potentially increase the value of the cryptocurrency as demand rises.