Block Reward

Because the block reward is almost entirely made of the block subsidy, it is very common to see people talking about the block subsidy while referring to it as the block reward. So in popular terminology, the term “block reward” doesn’t account for the fees.

The newly generated coins are created by a special kind of transaction called coinbase transaction. Typically, the coinbase transaction is the first transaction to be added on a block, and it basically generates coins out of nothing because the coins come from a single blank input.