The Fractal Bitcoin network officially completed its first halving milestone at block 2,100,000 on September 8, 2026. Instead of executing a single reduction, the activation of the FIP-102 upgrade applied two halvings simultaneously. This decision slashes the block reward issuance from 25 FB down to 6.25 FB.
The remaining portion of the block reward is split into two distinct paths. The first portion of 6.25 FB continues to flow to miners operating within the Fractal ecosystem, divided evenly at a 1:1:1 ratio across three mining methods: Merged Mining, Permissionless Mining, and Index Mining.
The second 6.25 FB portion follows a different route. These coins are allocated as a dedicated emission budget designated for direct distribution on the Bitcoin mainnet. The distribution framework will be finalized via a follow-up proposal, FIP-103.
A Single Unified Supply Across Networks
The implementation of FIP-102 ensures that the maximum supply cap remains protected. The update neither increases the total FB supply nor creates two separate supplies. Circulating tokens remain part of a single unified supply.
To maintain balanced valuation across chains, developers have designed a 1:1 conversion mechanism. Coin holders will eventually be able to freely convert FB held in the Fractal ecosystem into FB on the Bitcoin mainnet, and vice versa.
The mainnet distribution mechanism will be rolled out progressively over roughly three months. The research and implementation phase will span three to six months, followed by testing in the fourth quarter of 2026, ahead of full execution in the first quarter of 2027.
Details regarding eligible recipients for the FB allocation on the mainnet will be defined in FIP-103. The technical proposal will establish specific parameters, ranging from qualifying network activity and distribution mechanisms to the coin conversion flow between Fractal and Bitcoin.
Sharing Value with Mainnet Miners
The critical milestone at block 2,100,000 passed without any disruption. All nodes and indexing services across the Fractal network reportedly operated stably within the first ten minutes after the FIP-102 upgrade went live.
The move to allocate half of the reward to the mainnet is closely tied to Fractal’s position within the base-layer mining ecosystem. In April 2025, Fractal onboarded Foundry into its merged-mining infrastructure. That agreement granted access to massive computing power, which at the time represented 93% of Bitcoin’s total hashrate.
With infrastructure of that scale securing the network, Fractal is establishing a two-way economic corridor. The decision to split block rewards is not just about curbing coin inflation, but serves as a strategic move to align incentives with Bitcoin miners to keep securing their system.
Reported by crypto.news.
Also read: What Is Bitcoin Halving?
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
