In this article, we'll try to provide a clear and comprehensive description of the main reward methods offered by mining pools, and we'll also examine how these methods can impact a miner's overall income.
PPS (Pay Per Share)
A payment method where a miner receives a reward for each submitted share. The share's value depends on the estimated amount required to find a block. Even if the pool doesn't find a block, the miner still receives payment.
Example: If the cost of each share is 0.0125 BTC, and the pool statistically requires 1000 shares to find 1 block, then each share is valued at 0.0125 BTC. This method is a simple and reliable option, providing a stable reward for each valid share.
FPPS (Full Pay Per Share)
Similar to PPS but with an additional transaction fee when a block is found. The block reward includes both the base reward and additional funds from transaction fees.
Example: When a block is found, the miner receives not only the basic reward but also additional funds from transaction fees. FPPS motivates miners to actively participate in transaction processing.
PPLNS (Pay Per Last N Shares)
The miner receives payment after the block is discovered. The pool "goes back in time" and checks valid shares submitted before finding the block.
Example: If the time window is 24 hours and the miner submitted 10 valid shares during this period, they will receive payment for these 10 shares after the block is found. While PPLNS requires more patient waiting for payment until the block is discovered, it may offer higher income by considering the miner's contribution in the period before finding the block.
What reward method does OKMINER use?
At OKMINER, we employ the FPPS reward method with a 2% commission. This is the standard rate for BTC mining. We also review rates on an individual basis depending on the client's hashrate and the coin they are mining.
Conclusion
With PPS and FPPS payment methods, you receive payment regardless of whether the pool finds a block or not, providing a significant advantage over PPLNS. On the other hand, PPLNS allows you to somewhat gamble. If your mining power is directed to a pool that currently discovers a large block, you are likely to earn much more than on a PPS or FPPS pool.