With Bitcoin recently completing its fourth-year halving cycle, there is a fierce competition among users to secure halving blocks, resulting in the payment of substantial fees to mine a single block.
Bitcoin Mining Pool Records Exorbitant Block Fees
The 840,000th block was added to the Bitcoin blockchain today, marking the commencement of the highly anticipated halving event. Despite the stable price of BTC post-halving, transaction fees surged to unprecedented levels.
In the midst of intense competition, ViaBTC, a prominent mining pool, successfully mined the 840,000th Bitcoin block. Users collectively paid a remarkable \(37.7 BTC in mining fees, totaling over \)2.4 million, marking the highest fee ever paid for a Bitcoin block.
Reports from mempool revealed that following ViaBTC’s mining of the 840,000th block, the protocol automatically halved miners’ rewards from 6.25 BTC to 3.125 BTC per block. Alongside the fees, ViaBTC received a total payout of 40.7 BTC, valued at around $2.6 million, for their mining efforts.
While the expenditure of over $2.4 million on a single block may seem extravagant, the significance of the 840,000th block in the cryptocurrency realm cannot be overstated. This historic Bitcoin block is known to house the initial Satoshis, ‘sats,’ the smallest units of BTC post-halving, including sought-after “epic sats” that hold immense value for cryptocurrency enthusiasts.
Amidst the buzz surrounding these fragmented BTC units, much of the competition for Bitcoin blocks post-halving is attributed to the newly launched Runes Protocol, coinciding with the Bitcoin halving.
Enthusiasts Flock to Acquire Coveted Rune Tokens
The Runes Protocol, spearheaded by Casey Rodamor, a notable Bitcoin developer, has caused a stir in the cryptocurrency community, as enthusiasts eagerly vie to create and mint tokens directly on the Bitcoin network.
While mining pools focus on generating new Bitcoin blocks, enthusiasts have shelled out 78.6 BTC, approximately $4.95 million, to mint the rarest Runes. This surge in fees signifies a remarkable event, showcasing the growing adoption and engagement within the Bitcoin network.
As per Ord.io reports, a Rune named ‘Decentralized’ was acquired for 7.99 BTC, valued at \(510,760, while another named ‘Dog-Go-To-The-Moon’ was secured for 6.73 BTC, approximately \)429,831.
Leonidas, the protocol developer and host of Ordinals, a system for numbering “epic sats,” hailed the success of the Runes Protocol, noting that enthusiasts have effectively offset the reduction in miner rewards post-halving. He emphasized that Runes have significantly influenced Bitcoin’s security budget, potentially playing a pivotal role in ensuring the network’s longevity.