Fractal Bitcoin has reached a major milestone by completing its first-ever halving event, reducing the network’s block reward to 6.25 FB.
The halving occurred at block height 2,100,000 and activated the FIP-102 upgrade, a major network improvement that changes how future FB emissions will be distributed.
According to Fractal Bitcoin, the upgrade was completed successfully, with network nodes and indexing services continuing to operate normally after activation.
The latest update follows Bitcoin’s own supply-control model, where scheduled halvings reduce new token issuance over time to create a more predictable supply system.
Fractal Bitcoin Halving Reduces Mining Rewards
Before the upgrade, Fractal Bitcoin miners received 25 FB per block.
With the activation of FIP-102, the network introduced a new emission structure:
- 6.25 FB continues as the Fractal Bitcoin block reward
- 6.25 FB is reserved as an emission budget for future Bitcoin mainnet distribution
This means the total FB supply will not increase beyond the previously planned amount. Instead, the reward allocation has been redesigned to allow FB distribution across both the Fractal network and Bitcoin mainnet.
The upgrade effectively brought forward Fractal Bitcoin’s second scheduled halving, reducing the available Fractal-side reward from the previous 12.5 FB level to 6.25 FB.
FIP-102 Keeps Existing Mining Distribution Model
The FIP-102 upgrade does not change Fractal Bitcoin’s three existing mining mechanisms:
- Merged Mining
- Permissionless Mining
- Index Mining
The network will continue distributing rewards between these three categories using a 1:1:1 ratio.
Before the halving, each mechanism received an average allocation of approximately 8.33 FB per block when calculated across the three-block cycle.
After the upgrade, each category now receives around 2.0833 FB per Fractal block on average.
The remaining 6.25 FB allocation will eventually support FB distribution activities on Bitcoin mainnet.
FB Distribution Will Expand to Bitcoin Mainnet
One of the biggest changes introduced by FIP-102 is the plan to distribute FB through Bitcoin mainnet activity.
The proposal creates a framework where users can potentially earn FB through eligible interactions on Bitcoin rather than only through activity on the Fractal network.
The project plans to maintain a 1:1 conversion relationship between FB on Fractal and FB on Bitcoin mainnet.
This means moving tokens between the two environments will not create additional FB supply. Both versions will remain connected under a unified supply model.
FIP-103 Will Define Future Distribution Rules
While FIP-102 establishes the emission budget, the detailed rules for Bitcoin mainnet distribution will come through the upcoming FIP-103 proposal.
The future proposal is expected to define:
- Eligible activities for receiving FB
- Distribution mechanisms
- Technical requirements
- Conversion processes
- Final rollout structure
Fractal Bitcoin expects research and implementation work to continue for several months.
Testing is planned for the fourth quarter of 2026, with a full rollout targeted for the first quarter of 2027.
Fractal Bitcoin Strengthens Its Connection With Bitcoin Mining
Fractal Bitcoin has continued building a closer relationship with Bitcoin’s mining ecosystem.
Because both networks use the SHA-256 hashing algorithm, Bitcoin miners can secure Fractal Bitcoin through merged mining without requiring separate computing resources.
The network previously expanded its merged-minining ecosystem by adding additional mining partners, increasing the amount of computing power supporting the chain.
Fractal also uses its Cadence Mining model, which prevents merged miners from receiving the entire block reward by distributing rewards among different mining participants.
Fractal Bitcoin’s Growth Since Mainnet Launch
Fractal Bitcoin launched its mainnet in September 2024 using Bitcoin Core technology and the same SHA-256 mining algorithm used by Bitcoin.
The network also included a connection to Bitcoin’s history by embedding the same newspaper headline found in Bitcoin’s original genesis block.
Since launch, Fractal Bitcoin has attracted Bitcoin-focused applications looking for additional block space and faster confirmation times.
Projects built around Bitcoin-based assets have explored Fractal as an infrastructure layer for trading and decentralized applications.
Next Fractal Bitcoin Halving Expected at Block 4,200,000
Following the FIP-102 update, future reward reductions will follow the revised emission schedule.
The next Fractal Bitcoin halving is expected at block 4,200,000.
At that stage, both the Fractal-side block rewards and Bitcoin mainnet distribution allocation are expected to decrease proportionally unless a future Fractal Improvement Proposal modifies the system.
Fractal Bitcoin’s first halving marks an important step in the network’s development.
By reducing block rewards to 6.25 FB and creating a future pathway for Bitcoin mainnet distribution, the FIP-102 upgrade changes how FB emissions will work while maintaining the network’s original supply structure.
The upcoming FIP-103 proposal will determine how users interact with the new distribution system, making the next phase of Fractal Bitcoin’s development focused on implementation, testing, and broader Bitcoin ecosystem integration.
