Kaspa To Reduce Per-Block Subsidy By 5.6% In 2026
Mining operators will face a 5.6 percent reduction in per-block rewards when the network enters its next tier in November 2026.
Updated on Oct. 25, 2026 in Inflation
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The Kaspa network is set to implement a 5.6 percent reduction in its per-block subsidy on Nov. 4, 2026. This automated adjustment reflects the network's established issuance schedule affecting participants who earn mining rewards.
Why it matters
The change reflects the protocol's programmed supply constraints, which directly impact the issuance volume for network participants. Understanding these scheduled adjustments is critical for operators tracking network economics and capital returns.
The network will lower its per-block reward from 2.06017223 KAS to approximately 1.94454365 KAS following the 5.6 percent reduction. This adjustment maintains the target rate of 10 blocks per second established by the Crescendo upgrade.
The players
Kaspa Network
A decentralized digital ledger network that utilizes a block-dag architecture to target high transaction throughput and specific issuance schedules.
The details
The Kaspa protocol executes this reduction by multiplying the per-second subsidy by 2^(-1/12) at each scheduled step. The system calculates the base reward per block by dividing the target per-second issuance amount by the current block rate of 10 blocks per second. Transaction fees remain independent of this base subsidy, ensuring they do not offset the programmatic decline in new coin issuance.
Timeline
Nov. 4, 2026: Kaspa network enters the next subsidy tier.
Market Landscape
This adjustment follows the operational framework set by the Kaspa Crescendo upgrade, which standardized a target rate of 10 blocks per second. The move aligns the network with predictable, algorithmic supply constraints characteristic of programmatic digital issuance models.
Operators managing capital or mining infrastructure should factor the 5.6 percent drop in block subsidies into their long-term revenue modeling. Monitoring the protocol's difficulty-adjustment score remains essential for anticipating changes to net issuance.
The takeaway
The protocol's predetermined issuance schedule serves as a reminder to account for hard-coded changes in block rewards when assessing asset yield. Track the current network difficulty-adjustment score to model future revenue fluctuations as the network continues to scale.
What happens next
Participants should prepare for the subsidy tier shift occurring on Nov. 4, 2026, when the per-block reward is scheduled to decline to approximately 1.94454365 KAS.
Further reading
For broader context on how programmatic supply changes impact asset economics, review our Inflation section.
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