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# Can someone please break down the Bitcoin network’s subsidy formula?

Can someone please break down the Bitcoin network’s subsidy formula?

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1. turick says:

That weird E is just a summation function. Its just an instruction to iterate starting with the number at the bottom and incrementing “I” by 1 with each iteration until the top number is reached. In this case, infinity.

2. sphericalday says:

Why would you write it as

\$1+sumlimits_{i=1}^infty frac{1}{2^i}\$

\$sumlimits_{i=0}^infty frac{1}{2^i}\$?

Like 42069

4. itzwal says:

Number go up!

Number go up!

Number go up!

5. Lovelifelivingwell says:

duh…me no no lol

The formula is incomplete, by not having separate variables for the halving interval (210000) and initial reward amount (50). The arithmetic is trivial.

* `alpha` is 50 * 210000
* the sum of halves equals one
* the `1 + ` is the first reward era, 210000 blocks at 50 per block

The formula with the parameters plugged in

50 * 210000 (1 + 1)

What’s the question?

7. pwilly42 says:

I like pizza

8. Argyrus777 says:

Sheldon cooper (stares at the problem for a second)…. Seven!!!