Explain the 'Pay-Per-Share' (PPS) Method of Reward Distribution in Mining Pools ▴ Learn

Explain the ‘Pay-Per-Share’ (PPS) Method of Reward Distribution in Mining Pools.

Pay-Per-Share (PPS) is a pool reward system where miners are paid a fixed amount for every valid 'share' they submit, regardless of whether the pool actually finds a block. The pool operator absorbs the 'luck' or variance risk.

The payment is calculated based on the expected value of the block reward, normalized by the total shares required to find a block at the current difficulty.

In a Highly Volatile Cryptocurrency Market, Which Payment Method (PPS or PROP) Is Generally Preferred by Miners?

Why Is the Pool Fee Generally Higher for PPS Compared to PROP?

How Does the PPLNS Method Distribute the Pool’s Luck Variance between the Operator and the Miners?

How Does a pool’S’luck’Metric Influence a Miner’s Decision to Join?