How Does the Concept of a “Smart Contract” Simplify the Distribution of Block Rewards in Some Decentralized Pools?
In decentralized pools built on smart contract-enabled blockchains, the distribution logic (fee calculation, miner contribution tracking, and proportional payout) can be encoded directly into an immutable smart contract. This eliminates the need for a central, trusted operator to manage the funds.
Once the block reward is sent to the contract address, the contract automatically and transparently executes the distribution rules.