Are There Hybrid Payment Methods like Pay-Per-Last-N-Shares (PPLNS) and How Do They Work?
Yes, PPLNS is a common hybrid method that mitigates the risk of "pool hopping." PPLNS calculates a miner's payout based on the shares submitted over a "window" of the last N shares, rather than just the shares submitted in the current round. If a block is found, the reward is distributed proportionally to the shares submitted within that moving window.
This incentivizes miners to stay connected to the pool for longer periods to maximize their potential payout.
Glossar
Pool Hopping
Leverage ⎊ In cryptocurrency derivatives and options trading, pool hopping describes a strategic maneuver wherein traders dynamically shift positions between distinct liquidity pools or exchanges to exploit transient arbitrage opportunities or favorable pricing discrepancies.
Pplns Method
Methodology ⎊ The PPLNS Method, or Pay-Per-Last-N-Shares, is a widely adopted mining pool reward methodology that calculates a miner's proportional payout based exclusively on the shares submitted within a rolling window of the last 'N' shares accepted by the pool.
Shares
Equity ⎊ The term "Shares," within the context of cryptocurrency derivatives and financial engineering, fundamentally denotes a proportional ownership stake, mirroring its traditional equity counterpart.
Payment
Settlement ⎊ Payment within cryptocurrency, options trading, and financial derivatives represents the actual transfer of value, typically digital assets or fiat currency, to fulfill contractual obligations arising from a trade or contract execution.