How Does the ‘N’ Value in PPLNS Affect the Pool’s Payout Stability?
In Pay-Per-Last-N-Shares (PPLNS), 'N' represents the number of shares in the rolling window used to calculate a miner's proportional reward. A larger 'N' means the payout is based on a longer history of submitted shares.
This increases payout stability for the miner by smoothing out short-term luck fluctuations, making the pool's effective payout closer to the long-term expected value. However, a larger 'N' also means a new miner has to wait longer to receive their full proportional payout.
Glossar
Payout Scheme
Mechanism ⎊ A payout scheme, within cryptocurrency derivatives, defines the contingent cash flows generated by an instrument’s underlying asset performance, often referencing a pre-defined notional principal.
Payout
Delivery ⎊ The final payout represents the culmination of the option contract, involving the transfer of the underlying asset or a cash equivalent from the losing party to the winning party upon exercise or expiration.
Payout Stability
Measure ⎊ Payout Stability quantifies the consistency and predictability of a cryptocurrency miner's realized revenue stream over a defined operational period, typically measured by the standard deviation of daily or weekly earnings.
PPLNS
Protocol ⎊ Perpetual Protocol (PPLNS) represents a decentralized options trading platform built on Ethereum, facilitating the issuance and trading of perpetual options contracts.