How does Kaspa distribute mining rewards for merged blocks in the blockDAG?
In Kaspa's blockDAG, the miner who creates a block (block C) collects rewards not just for their own block but also for other blocks that were merged into it during consensus. The miner iterates through the mergeset in GHOSTDAG order: for each blue block (a block the network recognizes as honest and on-consensus), they add an output to their coinbase transaction with that block's calculated reward. If there are also red blocks or DAA blocks in the mergeset, the miner adds another output paying themselves those rewards as well. Understanding this matters for beginners because it means Kaspa's high block-rate design still compensates miners fairly — work that would be wasted as orphans in a traditional blockchain instead earns real rewards here.