Proof of Work Security Budget

The proof of work security budget is the total value of rewards and fees paid to miners to ensure the network remains resistant to attacks. It represents the cost required to maintain the integrity of the blockchain, often measured in terms of the total hash power directed at the network.

As block rewards decrease through halving, the security budget must be increasingly supported by transaction fees to maintain the same level of protection. If the budget falls too low, the cost of a 51% attack becomes economically feasible, creating a significant risk for the protocol.

Maintaining a robust security budget is essential for institutional trust and long term viability. It is a core concept in the intersection of protocol physics and economic security.