How does Dogecoin's block reward system function?

Dogecoin's block reward system is based on a combination of block rewards and block halvings, similar to Bitcoin's reward system. Here's how it works:

1. **Block Rewards**: When miners successfully mine a new block on the Dogecoin blockchain, they are rewarded with a certain number of newly created Dogecoin tokens. This reward serves as an incentive for miners to contribute their computational power to secure the network and validate transactions.

2. **Initial Block Reward**: When Dogecoin was launched in 2013, the initial block reward was set at 0-1,000,000 DOGE per block. This high initial reward rate helped to distribute coins quickly and incentivize early miners to participate in securing the network.

3. **Block Halvings**: Similar to Bitcoin, Dogecoin's block reward undergoes periodic halvings, where the block reward is reduced by half at specific block heights. The block reward halving schedule for Dogecoin occurs approximately every 100,000 blocks, or roughly every 1.5 months.

4. **Reward Reduction**: Each time a halving event occurs, the block reward is cut in half, resulting in a reduction in the rate of new Dogecoin issuance. This process continues until the maximum supply of Dogecoin is reached.

5. **Maximum Supply**: Unlike Bitcoin, which has a maximum supply of 21 million coins, Dogecoin's maximum supply is much higher at 10,000 DOGE per block, with no hard cap on the total supply. This means that Dogecoin will continue to be issued indefinitely, albeit at a decreasing rate over time due to the halving mechanism.

Overall, Dogecoin's block reward system is designed to gradually reduce the rate of new coin issuance over time, thereby creating scarcity and potentially increasing the value of existing coins. The periodic halving events serve to control inflation and ensure the long-term sustainability of the Dogecoin network.