How Does a Change in Pool Fees Affect the Overall Mining Breakeven Calculation?
Mining pool fees are typically a percentage of the block reward that the pool operator retains before distributing the rest to the miners. An increase in pool fees directly reduces the miner's net revenue per hash.
To maintain the breakeven point, the miner must compensate for the higher fee by reducing other operational costs, or the price of the mined cryptocurrency must increase.
Glossar
Breakeven
Equilibrium ⎊ The breakeven point, across cryptocurrency derivatives, options trading, and broader financial engineering, represents the price level at which an investment or trading strategy neither generates profit nor incurs a loss.
Pool Fees
Charge ⎊ Pool Fees represent the service charge levied by a cryptocurrency mining pool on its participating miners for coordinating computational resources and distributing block rewards.
Mining Breakeven
Equilibrium ⎊ Mining breakeven represents the point at which revenue generated from cryptocurrency mining equals the total costs incurred, encompassing electricity, hardware depreciation, pool fees, and operational expenses.