How Does the PPS Model Impact the Pool Operator's Need for a Large Capital Reserve? ▴ Learn

How Does the PPS Model Impact the Pool Operator’s Need for a Large Capital Reserve?

The PPS model necessitates a large capital reserve for the pool operator. Since the operator guarantees payment for every share, they must have enough liquid cryptocurrency on hand to pay miners even when the pool experiences a prolonged period of bad luck and fails to find a block.

This reserve acts as a buffer against the variance they have absorbed.

How Can a Pool Operator Use an Interest Rate Swap to Manage Floating-Rate Debt Used to Finance Mining Hardware?

How Does a Pool Operator Hedge the Risk Assumed under a PPS Scheme?

How Does a Mining Pool Operator Manage the Risk Associated with the PPS Reward System?

How Does the Pool Operator Mitigate the Financial Risk Associated with a Period of “Bad Luck” in PPS?