How Does a Mining Pool Operator Calculate the Guaranteed Payout Rate for PPS?

The PPS payout rate is calculated based on the expected value of finding a block over time. The operator estimates the average block reward, the network difficulty, and the pool's total hash rate.

This expected value is then divided by the number of shares required, on average, to find a block. The final guaranteed payout per share is this expected value minus the pool's operational fee.

This calculation allows the operator to consistently pay miners upfront.