Transaction-based rewards refer to incentives given to participants for processing transactions within a blockchain network. These rewards typically come in the form of newly created tokens or transaction fees.When a user initiates a transaction, it gets added to a pool of pending transactions. Miners, or validators in certain systems, compete to confirm and add these transactions to the blockchain. Once a miner successfully validates a block of transactions, they receive a reward. This reward not only compensates them for their computational effort but also helps secure the network.The method encourages decentralized participation, as individuals and organizations can earn rewards for contributing their resources. The size of the reward often varies based on network activity, transaction volume, and specific protocol rules. Overall, transaction-based rewards play a crucial role in maintaining the functionality and security of blockchain systems, motivating users to engage actively in the network.