This is an easy one. Duh, duh, duh, duh, duh, duh, duh, duh. What's up, sons? This is Blindread With Sound Effect, once again, and you guys have been asking, what are block rewards and why do they vary? So, I am going to go over it with you guys right now. Consider this the basic tutorial for block rewards. Why they vary and what it means for you as a minor. Let's get into it. But before we do, here's a word from our sponsor. Skillshare is an online learning community for creatives where millions come together to take the next step in their creative journey. Skillshare offers thousands of inspiring classes for creative and curious people alike. On topics including illustration, design, photography, video, freelancing, and even cryptocurrency. As a content creator and cryptocurrency enthusiast, Skillshare offers me the tools to sharpen my videography skills with classes like Video on a Budget, prepare for your shoot without breaking the bank. And for cryptocurrency, Accounting 101, Accounting Rules for Crypto and Bitcoin. It's curated specifically for learning, meaning there are no ads and they are always launching new premium classes. So you can stay focused and follow wherever your creativity takes you, and it's less than $10 a month with an annual subscription. The first 1000 advice subscribers to click the link in the description will get a free trial of premium membership so you can explore your creativity. Don't forget to hit that affiliate link down below and thank you guys so much for getting us enough views and enough subscribers to actually have sponsors. It's amazing. So block rewards are essentially the amount of whatever cryptocurrency you are mining that is paid out to the miner. Now there is always a base block reward and then in some cases there are additional fees that go into the block reward on top of the base block reward. We're going to use Ethereum as an example as most of you are probably mining Ethereum and Ethereum right now has a base block reward of two Ethereum. So every time a block is mined, essentially two Ethereum will then get put into the network. So these are generated and new tokens or new coins. So when it comes into the network, essentially at that point that's where you get a larger supply, right? Because every single block we are generating two new Ethereum. But what about the rest of the block reward? I seem to be getting more than two Ethereum or per block and it appears that we are being paid out more than that. That is true. What's happening after that is essentially what's known as fees and there are gas fees on every single Ethereum transaction on the network. So whenever somebody is like, hey, I want to send an Ethereum to another user. When they do that, they can select the amount of gas they want to spend depending on how fast they want the transaction to go through. The more you spend on that transaction or that fee, the more or the faster it will go through. The less you spend, the slower it will go through but it will be cheaper. Now what ends up happening is like we talked about earlier this week in relation to MEV. Is that as those fees go up, more people bid it up in sort of a bidding war to get their transaction to go through first. The reason for this is because essentially the faster your transaction goes through, the more close to the actual price you're intending to trade at will be maintained. So it's very important from a trader's perspective to get in a lot of cases the Ethereum traded out or whatever token they're swapping on Uniswap traded out as quickly as possible, which is why fees get higher and higher. In the case like a couple weeks ago, when we had a huge liquidation of Ethereum, the fees went really high and miners had a great day of mining even though the price of Ethereum was going down. The reason for this is because everybody that was liquidating their Ethereum was trying to get it out as fast as possible. At the current price before the price of Ethereum dropped. Now what I've done here is set up a little example and you guys can go here to etherchain.org and browse of course different blocks. And as you can see here we just have a list of blocks that have been solved and as you can see we have rewards 3.6, 3.2, 3.3. And they're varying because of the fees. If you have a particular block that you want to go ahead and review, you can always come over to etherchain.org and click into one and we can see you know the miner here which is in this case etherchain, let's see, sparkpool, excuse me. And then you can go over to the blocks and see which blocks they have solved and then you can also take a look at fees and so on. So if you are kind of trying to figure out essentially what the price or if the mining is going to be good that day or bad that day, you can always come in here and get a pretty good overview of essentially how much fees are being paid out. In the case of right now it's actually low which we have explained in an earlier video that it's low because well previously we had a big liquidation and now the fees are low because there's not as much money going around on Ethereum in particular and people aren't liquidating, people also haven't started buying back in as heavily. So we will probably see a big boost in of course the block reward when people start buying back into Ethereum and other projects on Ethereum. This is true for pretty much every other cryptocurrency as well. Now there are some variances of course with things like Bitcoin because they function different from the aspect of being a transaction coin as opposed to being an application coin and Ethereum is more profitable in mining because of the amount of applications and projects that are built on top of it. As opposed to Bitcoin which is primarily focused on financial dealings right just trading money back and forth not so much the entire aspect portion or application portion of Ethereum. So I hope this explains a little bit better for you guys on exactly why your fees or the block reward is varying. It's due to the fees right and so essentially higher fees are better for miners. Now there is a very obvious problem of needing to balance that out right because if the fees maintain high and then user count goes down then miners don't have as many transactions to mine. So as a miner your ultimate goal shouldn't necessarily be to be driving up the fees because then you reduce the amount of users on the platform. So I wanted to make it clear that as a miner I don't think necessarily that the fees need to be super duper high. I just think that we need to be able to make sure that miners maintain their ability to stay profitable. So if you guys have any additional questions be sure to let me know in the comments section below and hopefully this also gets you a little bit closer to understanding what's happening with EIP 1559 and the fee burn which will directly affect miners because that will impact of course the variance of the block after the base reward. Yeah I will see you next Tuesday. If you enjoyed this content you can check out more crypto content on this playlist up here or of course go ahead and subscribe for more in the future. Adios!