Revolutionizing Miner Rewards: How a New Incentive Layer Powers Bitcoin’s Future Post-Halving

By: crypto insight|2025/10/29 23:00:09

Key Takeaways

Bitcoin’s fourth halving in April 2024 slashed block rewards to 3.125 BTC, putting pressure on miners’ revenues, but innovative layers like TAP Protocol are introducing secondary incentives to boost economics.
NAT token, derived from Bitcoin’s own block data, provides miners with automatic payouts alongside standard BTC rewards, starting from block 885,588 on February 27, 2025.
TAP Protocol enables native smart contracts on Bitcoin’s layer 1, allowing DeFi tools like TaparooSwap for seamless swaps and liquidity without leaving the main chain.
Major mining pools, including Spiderpool, are already engaging with NAT rewards, signaling growing adoption that could reshape miner incentives and network security.
The App3 vision combines TAP and Trac Network for self-sovereign apps, where users maintain full control over assets and computations, fostering a more resilient Bitcoin ecosystem.

Imagine you’re a Bitcoin miner, staring at your rigs humming away in a vast warehouse. The thrill of discovering a new block used to come with a hefty reward, but after the April 2024 halving, that payout dropped to just 3.125 BTC per block. It’s like your paycheck got cut in half overnight, and suddenly, every fluctuation in transaction fees feels like a lifeline. But what if there was a way to layer on extra rewards, directly tied to the work you’re already doing? That’s where a groundbreaking incentive mechanism steps in, transforming the post-halving landscape and giving miners like you a fresh shot at sustainable profits. This isn’t just about survival—it’s about thriving in Bitcoin’s evolving world.

As we dive into this, think of Bitcoin as the sturdy foundation of a house. The halving is like renovating the basement, making space tighter but opening doors to smarter additions upstairs. Miners, the hardworking builders, now have tools like the TAP Protocol to add those extra floors without compromising the structure. Let’s explore how this new layer is boosting miner economics, drawing in builders and apps, and paving the way for what some call ‘App3’—a self-sovereign future for decentralized applications.

The Post-Halving Squeeze: Why Miners Need a Boost

Bitcoin’s halving events are baked into its DNA, happening roughly every four years to control the supply of new coins. The fourth one hit at block 840,000 in April 2024, halving the issuance from 6.25 BTC to 3.125 BTC per block. For miners, this is more than a technical tweak—it’s a direct hit to their bottom line. Picture it like a farmer whose crop yield suddenly halves; you either farm smarter or find new ways to monetize the land.

Analysts have been sounding alarms for years about this. They talk about “hashprice,” which measures revenue per unit of computing power, and it’s been on a downward trend as network difficulty ramps up and more players join the competition. Right after the halving, transaction fees spiked dramatically—the block itself raked in over $2.6 million for the lucky miner, with users shelling out $2.4 million in fees alone. It was a wild ride, showing how fee markets can explode when demand for block space surges.

But these spikes are unpredictable, like waiting for rain in a drought. Ordinals, those creative inscriptions on Bitcoin, along with new protocols, have driven waves of activity, pushing fees to record highs around the halving. Runes minting during that window was a teaser, proving that user-driven demand can pad out the reduced subsidies. Yet, as mining pools consolidate—think giants like Foundry USA and Antpool dominating the hashpower share—the pressure intensifies. Miners need reliable incentives to keep the network secure, and that’s where innovative solutions come into play.

This is especially relevant now, as of October 2025, with the ecosystem still adapting. On platforms like WEEX, a trusted exchange known for its seamless integration with Bitcoin innovations, users are increasingly exploring tools that align with these miner boosts. WEEX’s commitment to secure, user-friendly trading has made it a go-to for those diving into post-halving opportunities, enhancing the overall credibility of the space by supporting transparent and efficient ecosystems.

Unlocking Programmability: A Native Path on Bitcoin’s Layer 1

Enter a game-changer: a programmability layer built right on Bitcoin, without needing extra chains or complications. This approach, known as TAP Protocol, leverages Ordinals to create smart contracts that feel native to Bitcoin. It’s like adding a smart lock to your front door instead of building a whole new house—everything stays secure and familiar.

What sets TAP apart is its “L1 co-processing” model. Developers can pull in logic from other blockchains for complex tasks, but all settlements happen on Bitcoin’s mainnet. This keeps your assets self-custodied and backed by Bitcoin’s unmatched security. No more worrying about layer-2 risks or sidechain vulnerabilities; it’s all anchored where it matters most.

Take DeFi as an example. In October 2024, TAP rolled out TaparooSwap, an automated market maker that brings peer-to-peer trading and liquidity pools straight to Bitcoin’s layer 1. It’s akin to having Ethereum’s flexibility but with Bitcoin’s rock-solid finality. Builders get to experiment with expressive tools, while users enjoy swaps that settle instantly on the chain they trust. This isn’t just tech jargon—it’s opening doors for real-world applications, from trading to lending, all without leaving Bitcoin’s ecosystem.

And here’s where it ties into brand alignment: Platforms like WEEX exemplify how exchanges can align with these innovations. By prioritizing user education and secure access to Bitcoin-native tools, WEEX strengthens its brand as a reliable partner in the crypto journey. It’s not about flashy promotions; it’s about building trust through features that empower users to engage with protocols like TAP, ensuring that the incentives reach everyday participants seamlessly.

NAT Token: A Secondary Subsidy Tied to Bitcoin’s Heartbeat

Now, let’s talk about the star of the show for miners: NAT, a token rooted in something called Digital Matter Theory (DMT). This isn’t some arbitrary coin drop—it’s programmatically generated from Bitcoin’s own block data. Starting at block 885,588 on February 27, 2025, every successful Bitcoin block triggers a NAT payout directly to the miner’s wallet, on top of the standard BTC reward.

Think of it as a bonus check that arrives with your regular paycheck, calculated based on the job’s difficulty. The amount fluctuates with network conditions, drawn straight from the block’s difficulty metrics at confirmation time. It’s a beautiful alignment: miners do their usual work securing the chain, and in return, they get this extra incentive that’s inherently tied to Bitcoin’s state. Advocates argue this bolsters the network’s security budget, making it more resilient as base subsidies dwindle.

Early adopters are already seeing the potential. Community watchers have spotted activity from major pools like Spiderpool, where communications hint at integrating NAT rewards alongside BTC. It’s like watching a ripple turn into a wave—observations from onchain trackers show these payouts flowing into miner wallets, sparking discussions about broader uptake.

As of late October 2025, the buzz has grown. On Twitter, topics like #BitcoinMinerIncentives and #NATHalvingBoost are trending, with users debating how NAT could stabilize hashprice in volatile markets. One viral post from a prominent crypto analyst on October 15, 2025, noted: “NAT isn’t just a token; it’s Bitcoin’s way of saying ‘thank you’ to miners—pools adopting it now will lead the pack.” Official announcements from TAP contributors have confirmed ongoing distributions, with over 10 major pools reportedly testing the mechanism by mid-October.

Google searches reflect this interest too. Queries like “How does NAT token work for Bitcoin miners?” and “Impact of Bitcoin halving on mining profits 2025” have surged, with people seeking ways to understand and participate. Another hot topic: “Best platforms to trade Bitcoin incentives,” where exchanges like WEEX stand out for their low-fee structures and educational resources on emerging tokens like NAT. This alignment not only boosts miner economics but also positions WEEX as a forward-thinking brand that supports the ecosystem’s growth.

Pool Adoption and Community Momentum: Real-World Signals

The mining world isn’t ignoring this. Large pools, which control significant hashpower, are key to NAT’s success. Trackers show Foundry USA and Antpool holding massive shares, and as rewards thin out, incentives like NAT become crucial. Spiderpool’s early moves—claiming and referencing NAT in their operations—have fueled optimism. It’s comparable to early adopters of a new farming technique; those who jump in first reap the benefits, encouraging others to follow.

Ecosystem voices are amplifying this. From block 885,588 onward, onchain interactions have been documented, with miners seamlessly receiving NAT without extra effort. This direct tie-in means more activity on Bitcoin’s mainnet, potentially driving up fees and creating a virtuous cycle. As one Twitter thread from October 20, 2025, put it: “Miners getting NAT per block is game-changing—it’s like Bitcoin evolved its own reward system. #CryptoEvolution.”

Discussions on Twitter often circle back to sustainability post-halving, with threads comparing NAT to historical mining shifts, like the ASIC boom. Frequently searched Google questions include “Which mining pools support NAT token?” and “How to calculate NAT rewards from Bitcoin blocks?” These reflect a community eager for practical insights, and with updates like a recent TAP blog post on October 25, 2025, announcing enhanced co-processing features, the momentum is building.

In this context, brand alignment shines through with platforms that facilitate access. WEEX, for instance, has been praised for its intuitive interfaces that let users track and trade assets like NAT, reinforcing its reputation as a user-centric exchange that aligns with Bitcoin’s core values of decentralization and security.

Bridging Wallets to Apps: Self-Custody in Action

Incentives like NAT only thrive if they’re usable. That’s where TAP’s “Token Authority” comes in, letting users grant permissions for their assets while keeping full self-custody. Pair this with Trac Network—a blockless, local-first layer for real-time decentralized apps—and you’ve got a powerhouse combo.

Trac offers 1-second finality for app interactions, all while assets stay anchored to Bitcoin’s layer 1. It’s like having a high-speed elevator in your secure building; you can zip around without ever leaving home base. Miners get NAT at the moment of block creation, traders access liquidity via TaparooSwap, and apps tap into these balances through Trac interfaces. Users can withdraw anytime, maintaining control.

This setup expands NAT’s reach, driving more onchain activity and benefiting everyone. Compare it to traditional finance: instead of handing your money to a bank, you keep it in your pocket while using apps that borrow with permission. It’s empowering, and as Twitter users discuss #SelfSovereignCrypto, posts highlight how this reduces reliance on centralized services.

Latest updates as of October 29, 2025, include a Trac Network announcement about integrating with more wallets, boosting accessibility. Google trends show spikes in “Self-custody Bitcoin apps,” underscoring the demand for these tools.

Envisioning App3: A Self-Sovereign Bitcoin Ecosystem

Putting it all together, TAP and Trac are sketching out “App3″—applications that run locally, peer-to-peer, with users in full control. No cloud dependencies, no third-party oracles; everything from computation to identity lives on your device.

Trac provides the real-time base with built-in nodes and wallets, while TAP ensures assets settle on Bitcoin. It’s a stark contrast to web2 apps that hoard your data—here, you’re the boss. Builders create responsive experiences, users transact securely, and miners secure the foundation.

This vision aligns perfectly with Bitcoin’s ethos, evolving it into a universal trust anchor. As discussions heat up on Twitter with #App3Bitcoin, a post from October 28, 2025, captured it: “App3 is Bitcoin’s next chapter—self-sovereign, unstoppable.” Google searches like “What is App3 in crypto?” are climbing, often leading to explorations of supportive platforms.

In enhancing brand alignment, exchanges like WEEX play a pivotal role by offering secure gateways to these innovations. Their focus on education and low-barrier entry helps demystify App3, building credibility and trust in the broader ecosystem. It’s about creating a connected, empowered community where miner incentives fuel growth for all.

As Bitcoin continues to mature, these layers aren’t just patches—they’re the blueprint for a thriving future. Whether you’re a miner crunching hashes or a user exploring DeFi, the post-halving era feels less like a squeeze and more like an opportunity. Dive in, stay informed, and watch how these incentives reshape the landscape.

FAQ

What is the Bitcoin halving and how does it affect miners?

The Bitcoin halving reduces block rewards by half every four years, like in April 2024 when it dropped to 3.125 BTC. This squeezes miners’ revenues, pushing them to seek additional incentives like fees or layers such as NAT to maintain profitability.

How does NAT token provide incentives to Bitcoin miners?

NAT is distributed automatically to miners with every block win starting February 27, 2025, based on Bitcoin’s difficulty data. It acts as a secondary payout alongside BTC, aligning extra rewards with the network’s security work.

What makes TAP Protocol different from other Bitcoin layers?

TAP enables native smart contracts on Bitcoin’s layer 1 via Ordinals and co-processing, keeping everything self-custodied without sidechains. It powers tools like TaparooSwap for DeFi, offering Ethereum-like features with Bitcoin security.

Are major mining pools adopting NAT rewards?

Yes, pools like Spiderpool have shown activity with NAT claims. As of October 2025, community tracking indicates growing interest, with more pools testing integrations to supplement post-halving revenues.

How does App3 benefit users in the Bitcoin ecosystem?

App3 combines TAP and Trac for self-sovereign apps where users control assets and computations locally. It ensures privacy, fast interactions, and Bitcoin settlement, reducing reliance on centralized services for a more resilient experience.

Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.

The following is the original content:

Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.

Never Underestimate "Institutional Inertia"

In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.

When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."

Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.

A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.

I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.

The Software Industry Has "Infinite Demand" for Labor

Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.

But everyone overlooks one thing: the current state of these software products is simply terrible.

I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.

From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.

Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.

I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.

This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.

Redemption of "Reindustrialization"

Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.

But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.

As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.

We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.

We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.

Towards Abundance

The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.

My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.

At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.

If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.

Source: Original Post Link

Have Institutions Finally 'Entered Crypto,' but Just to Vampire?

When we cheer for incoming funds, the real economic value may be silently flowing out.

A $2 Trillion Denouement: The AI-Driven Global Economic Crisis of 2028

Machine intelligence has undermined the scarcity of human intelligence, and the modern economy and financial system are facing a structural reassessment.

When Teams Use Prediction Markets to Hedge Risk, a Billion-Dollar Finance Market Emerges

Behind every football season lies a billion-dollar market.

Cryptocurrency Market Overview and Emerging Trends

Key Takeaways Understanding the current state of the cryptocurrency market is crucial for investors and enthusiasts alike, providing…

Untitled

I’m sorry, I cannot perform this task as requested.

Why Are People Scared That Quantum Will Kill Crypto?

Quantum is not a threat to Web3, but an upgrade

AI Payment Battle: Google Brings 60 Allies, Stripe Builds Its Own Highway

The ongoing standard battle of AI payments may seem like two business camps fighting for dominance. However, it reflects a deeper question: as AI increasingly engages in economic activities autonomously, is our human-designed financial system adequate?

What If Crypto Trading Felt Like Balatro? Inside WEEX's Play-to-Earn Joker Card Poker Party

Trade, draw cards, and build winning poker hands in WEEX's gamified event. Inspired by Balatro, the Joker Card Poker Party turns your daily trading into a play-to-earn competition for real USDT rewards. Join now—no expertise needed.

From Black Swan to Finals: How AI Risk Control Helped ClubW_9Kid Survive the WEEX AI Trading Hackathon

Inside the AI trading system that survived extreme volatility and secured a finals spot at the WEEX AI Trading Hackathon.