How Does the “Mining Pool” Structure Distribute Transaction Selection and Block Rewards?
A mining pool aggregates the hash power of many individual miners to increase the probability of finding a block. The pool operator manages transaction selection, typically using a high fee-rate strategy.
When a block is found, the total reward (block subsidy plus fees) is distributed among the pool members proportional to the amount of hash power (shares) they contributed.
Glossar
Transaction Selection
Criterion ⎊ Transaction selection is the critical process where a block producer, such as a miner or validator, chooses a subset of pending transactions from the mempool to include in the next canonical block.
Mining Pool
Consensus ⎊ Mining pools represent a collaborative effort among network participants to aggregate computational resources, increasing the probability of successfully mining blocks and earning associated rewards within a Proof-of-Work cryptocurrency system.