How do ETH miners make money?

Dbna...HGPz
2 Apr 2022
173


We are aware that miners on Ethereum need to be incentivised to process transactions. The revenue that miners receive for their work can be broken down into three sources:

  1. The reward of 2 ETH they are paid for mining a block (as well as a smaller reward for uncle block processes).
  2. The fees received from users who bid for a spot on the block irrespective of their final position in the block. (For a user, this is the gas fee for your transactions on ETH)
  3. The value (dependent on the nature of the transactions executed) miners extract by inserting (or not inserting) transactions at specific points in the block.


The first two sources of revenues for miners are commonly discussed and reiterated within the community of users on Ethereum who have high-level exposure to how contract protocols on Ethereum work. The last revenue source however, is less talked about compared to the previous “conventional” sources of revenue and is known as the miner-extractable value, or MEV.

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7 Comments

B
Johnson Chau
I wonder how graphics card and energy prices impact on their earnings. I always hear stories about the latest NVDA cards running out because of miners.
RCBEST
Wow never knew this! Very interesting! It would be cool if we can have some insights as well to the numbers and how much ETH miners get paid in terms of fiat.
Minted Millennials
I can't wait for the POS to be implemented! Can only make ETH stronger!
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