How Does the Concept of “Risk-Adjusted Return” Apply to Choosing between PPS and PROP?

Risk-adjusted return measures the return earned for every unit of risk taken. For a miner, PPS offers a lower risk (guaranteed payment) but also a slightly lower potential return due to the higher fee.

PROP offers a higher risk (variance) but a potentially higher return due to the lower fee. A miner with a low-risk tolerance and high capital expenditure might prefer PPS, while a risk-tolerant miner with a long-term view might prefer PROP.