Miners see increased revenue stream from inscriptions Miners see increased revenue stream from inscriptions

Miners see increased revenue stream from inscriptions

Data via Glassnode

Bitcoin miner fee increase sparks discussion on future revenue models.

Quick Take

The Bitcoin mining industry is experiencing a notable shift in its revenue structure.

CryptoSlate’s analysis identified a significant increase in the fees miners earn from processing transactions. Last week, these fees exceeded the standard block reward of 6.25 BTC, suggesting a potential shift away from the traditional way miners generate their income.

Typically, miners’ income is a combination of block rewards and transaction fees. Over the past week, transaction fees accounted for about 30% of their total income. However, a significant change occurred on Dec. 24, when this figure dropped to 15%.

However, data from Glassnode showed that inscriptions are now accounting for a larger portion of these fees. This raises the question – are inscriptions gradually becoming a more crucial revenue stream for miners?

Understanding these changes is key to comprehending the evolving dynamics of the Bitcoin mining industry. Significant shifts or reversals in these trends could provide insights for predicting future movements within this sector.

Moreover, if the trend of declining overall revenue continues, partly due to the high costs of mining operations, and if inscriptions keep growing as a percentage of total fees, we might see miners increasingly supporting inscriptions. This scenario could unfold despite the controversial standing of inscriptions in the Bitcoin community.

inscriptions miner fees
Graph showing inscription fees as a percentage of total fees paid to Bitcoin miners in 2023 (Source: Glassnode)