Halving occurs when the total reward per confirmed block is reduced by half.
What Is a Halving in Crypto?
Block subsidies or rewards for validating transactions are reduced by half during a halvening (or halving). To put it another way, it has a significant impact because it reduces the rate at which coins and tokens enter circulation, increasing their scarcity and making them more valuable.
These occurrences are foreseen and written directly into the code. For example, every four years, the Bitcoin rewards are set to decrease.
By the time of the next Bitcoin halving, scheduled for March 2024, the block reward will be reduced to 3.125 BTC.