Does a Pool’s Minimum Payout Threshold Differ Significantly between PPS and PROP?
Yes, a pool's minimum payout threshold can differ. PPS pools often have a lower minimum payout threshold because the operator is calculating and guaranteeing the earnings per share, making it easier to track and distribute small amounts frequently.
PROP pools, especially smaller ones, might have a slightly higher threshold to reduce the frequency of on-chain transactions, which incur network fees and can be more complex to manage due to the variability of block rewards.
Glossar
Threshold
Barrier ⎊ A threshold, within cryptocurrency derivatives and options trading, fundamentally represents a price level that must be breached for a contract to become active or trigger a specific outcome.
Payout
Delivery ⎊ The final payout represents the culmination of the option contract, involving the transfer of the underlying asset or a cash equivalent from the losing party to the winning party upon exercise or expiration.
PPS Pools
Mechanism ⎊ PPS Pools, within cryptocurrency derivatives, represent a collaborative funding structure for options selling, specifically designed to mitigate individual capital constraints and distribute risk amongst participants.
PPS
Protocol ⎊ The term PPS, within cryptocurrency and derivatives contexts, frequently denotes a Payment Protocol Standard, a framework designed to facilitate atomic swaps between distinct blockchain networks.
Minimum Payout Threshold
Constraint ⎊ The Minimum Payout Threshold represents a technical constraint imposed by a mining pool, defining the smallest quantum of accumulated cryptocurrency earnings that will trigger an automated on-chain transfer to a miner's wallet address.
PROP
Methodology ⎊ PROP (Proportional) is a mining pool payout method where rewards are distributed proportionally to the number of shares submitted by each miner during the time it takes to find a block.