How mining rewards work

Economics

Kaspa mining rewards operate at the protocol level, through block rewards earned via proof-of-work on the kHeavyHash algorithm. Here is how that connects to the role Kasper Transactions plays.

Abstract illustration of glowing teal and mint blocks flowing in parallel and merging into one path

Protocol-level rewards

Block rewards secured through proof-of-work

Kaspa is a proof-of-work Layer-1 cryptocurrency. Miners contribute computational work using the kHeavyHash algorithm, and successful blocks earn rewards, the same basic mechanism that secures Bitcoin and other PoW networks, adapted to Kaspa's blockDAG structure.

Because Kaspa's blockDAG allows many blocks to be produced and confirmed in parallel rather than discarding all but one per time window, the network can distribute block rewards across a much higher volume of accepted blocks than a traditional single-chain design allows in the same span of time.

GHOSTDAG consensus determines which blocks are "blue," meaning accepted and contributing to consensus, which is what ultimately determines reward eligibility within the DAG structure.

The Crescendo upgrade raised Kaspa's mainnet block rate from 1 block per second to 10 blocks per second on May 5, 2025, directly increasing the pace at which block rewards are produced.

Fixed supply

A capped, fairly distributed asset

Kaspa has a fixed maximum supply of approximately 28.7 billion KAS. There was no premine, ICO, venture capital allocation, or founder token allocation at launch. Block rewards are the mechanism by which new KAS enters circulation over time, tied directly to network mining activity.

10 BPS Mainnet block rate since the May 2025 Crescendo upgrade
kHeavyHash The proof-of-work algorithm that block rewards are earned through
~28.7B KAS Fixed maximum supply, distributed through mining

Our role

Infrastructure that facilitates network transactions

01

Facilitating, not trading

Kasper Transactions is an infrastructure provider facilitating high-speed KAS transactions for network rewards. We run mining and settlement infrastructure. We are not a trading platform or exchange.

02

Hardware efficiency shapes reward stability

The move from entry-level IceRiver KS1 hardware to KS7-class machines, with roughly 116 to 117 J/TH efficiency and 30 TH/s hashrate per unit, is aimed at long-term reward stability as the network's block rate has increased.

03

Solar power keeps costs predictable

Because mining economics depend heavily on energy costs, solar-aligned compute helps keep Kasper Transactions' long-term operating costs more predictable relative to grid-dependent alternatives.

Want the technical detail

Read the full explainer on Kaspa's blockDAG and GHOSTDAG consensus.

What is Kaspa