How Do These Fee Structures Resemble Commission Models in Traditional Finance?
Mining pool fee structures are analogous to commission or fee models in traditional finance. PPS is similar to a fixed commission per transaction or a management fee, where the service provider (pool) guarantees a result for a higher fee.
PPLNS is closer to a performance-based fee or a profit-sharing arrangement, where the fee is lower, but the client (miner) only gets paid when the overall operation (pool) is successful.