How Does the PPLNS Method Distribute the Pool’s Luck Variance between the Operator and the Miners?

PPLNS primarily shifts the luck variance risk onto the miners, similar to PROP. The operator does not guarantee a fixed payout per share; instead, the miners are paid proportionally only when a block is found.

However, because the payout is smoothed over a moving window, the short-term payout variance for the miner is less extreme than in a pure PROP system, effectively distributing the variance over a longer period.