> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/bitcoin-protocol-documentation/concepts/economic-model.md). # Economic Model The protocol defines an economic system: a native token, a fixed issuance schedule, and a proof-of-work incentive that rewards nodes for extending the chain. This page summarises the parts of that model that are fixed by consensus rules. The rules themselves are specified on the [Consensus Rules](/bitcoin-protocol-documentation/specification/consensus-rules.md) page. ## Native token and supply The native token is BSV. Its indivisible unit is the **satoshi**; 1 BSV = 10⁸ satoshis. Total issuance is capped at **21,000,000 BSV** (2.1 × 10¹⁵ satoshis), distributed entirely through block subsidies. The cap is a consequence of the block-subsidy schedule below and is not separately configurable. ## Block subsidy New coins enter circulation through the coinbase transaction of each block. The subsidy (`GetBlockSubsidy`) starts at **50 BSV** per block and **halves every 210,000 blocks** (approximately every four years), reaching zero after 64 halvings. A coinbase may claim at most the subsidy plus the total fees of the transactions in the block; a block that claims more is invalid (`bad-cb-amount`). See [Consensus Rules](/bitcoin-protocol-documentation/specification/consensus-rules.md#block-subsidy-rule-consensus). As the subsidy diminishes, transaction fees become the primary incentive for nodes to include transactions and extend the chain. ## Proof of work as an incentive Proof of work requires nodes to expend computation (and therefore energy and capital) to produce a valid block. A node that produces a block earns its subsidy and fees only if other nodes accept the block and build on it, which they do only if it satisfies the consensus rules. This ties a node's reward to rule-compliant behaviour. The difficulty-adjustment algorithm targets a fixed average block interval regardless of how much computation the network applies; see [Proof of Work](/bitcoin-protocol-documentation/specification/blocks.md#proof-of-work) and [Blocks](/bitcoin-protocol-documentation/specification/blocks.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://hub.bsvblockchain.org/bitcoin-protocol-documentation/concepts/economic-model.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.