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Pay-Per-Share vs FPPS

The PPS method pays miners based on their share contributions to the pool. This is a common method used by most pools to distribute rewards to their miners.

In this system, earnings are more stable and predictable. This is a great option for long-term mining. It also reduces the randomness of finding blocks and the risk of hopping from one block to another.

Pay-Per-Share (PPS)

Pay-Per-Share (PPS) is a mining pool reward system that rewards miners for every share they contribute. It is similar to proportional reward systems, but it also deducts mining pool fees and offers a stable income to miners.

PPS pools are usually more stable than other types of pools, and they are also less vulnerable to pool hoppers. However, PPS pools tend to have higher fees than other mining pool methods.

In addition to sharing the block reward, PPS pools typically share transaction fees as well. These fees are based on a specific period and are calculated and distributed to miners based on their hash power contributions in the pool.

Pay-Per-Last-N-Shares (PPLNS) is another mining pool payment scheme. It is a form of proportional reward system that distributes profits as a percentage of shares miners have contributed to total shares (n). This method relies on a shift system to calculate share submission and profit. It is particularly useful for large pools with high probabilities of finding blocks in the round or those that have been mining for longer periods of time.

Pay-Per-Last-N-Shares (PPLNS)

A PPLNS pool rewards miners based on the last N shares submitted to the pool. For each share, the miner is rewarded a proportion of the block reward, less the pool's cut.

Another variant of this scheme is dynamic pay-per-last-N-shares (DPPLNS). This method tries to eliminate the issue of very small rewards at the beginning of mining.

This model is most suited for low-priced orders placed on pools that aren't mining constantly. This model also tends to have a high variance in the short term, especially when the luck factor of the pool decreases.

Another popular distributing method is FPPS (Full Pay Per Share). This model uses the PPS system, but pools also distribute transaction fees among their participants. They take the average network transaction fees for a specific period and distribute it based on the number of shares submitted.

Full Pay-Per-Share (FPPS)

Full pay-per-share (FPPS) is a mining payout method that pays out standard transaction fees as well as block rewards. It operates similarly to PPS reward systems, but with a few key differences.

FPPS pools calculate transaction fees for a certain period and distribute them evenly among miners. This scheme is ideal for placing low-priced orders with pools that aren’t mining constantly, as it minimizes the volatility of your payout in the short term.

The FPPS system also encourages miners to switch to renewable energy sources, which can help reduce the environmental impact of mining. FPPS is one of the most popular Bitcoin mining pool payout schemes, and it’s available at many reputable pools.

The most important advantage of FPPS is that you will receive payments regardless of whether a pool finds a block or not. This is a huge advantage over the PPLNS payment method, which only pays out once a pool finds a block.

Mining Pools

Mining pools are groups of miners who share computational resources to increase the odds of finding cryptocurrency blocks. They use a similar approach to solving cryptographic puzzles as a cohesive unit, allowing miners to solve the blockchain's hashed block faster than they could on their own.

There are several factors to consider before choosing a mining pool. These include the pool's size, its reward system, and its fees.

The pool's reward system determines how much money members will earn based on the number of shares they submit to the pool. The system also includes a variable share difficulty feature, which allows pool members to change their shares' probability of finding a block.

There are two methods of assigning work to mining pools: one involves granting each member a specific range of nonces, the numbers that blockchain miners use to solve the blockchain's hashed blocks; the other allows miners to choose their own work units and makes sure no two members work on the same range.

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