How Are Transaction Fees Factored into the FPPS Payout Method?
Full Pay-Per-Share (FPPS) is an enhancement of the standard PPS scheme. Like PPS, it pays a fixed rate per share based on the expected block reward.
However, FPPS also incorporates the expected value of the transaction fees included in the block. The pool operator estimates the average transaction fees collected per block over a period and adds this value to the calculated PPS rate, providing miners with a higher, more comprehensive guaranteed payout.
Glossar
Fixed Rate per Share
Principle ⎊ The Fixed Rate per Share mechanism establishes a predetermined, constant compensation amount paid to a miner for each valid share of work submitted to the pool.
Guaranteed Transaction Fee Payout
Provision ⎊ The Guaranteed Transaction Fee Payout is a specific provision within advanced mining pool compensation models, most notably Full Pay-Per-Share (FPPS), where the pool commits to paying miners a fixed, predetermined value for the transaction fees associated with their contributed work.
FPPS
Methodology ⎊ Full Pay Per Share (FPPS) represents a mining pool payment methodology where miners receive a fixed payment for each share submitted to the pool.
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.
Average Transaction Fees
Metric ⎊ The average transaction fee represents the mean cost incurred by users to process and confirm a single operation on a blockchain network over a specified period.
Transaction Fees
Fee ⎊ Transaction fees, inherent in cryptocurrency, options, and derivatives markets, represent the cost of executing trades and utilizing network infrastructure.