How Does the Risk of Stale Blocks Influence a Mining Pool's Payout Structure? ▴ Learn

How Does the Risk of Stale Blocks Influence a Mining Pool’s Payout Structure?

Mining pools often adjust their payout structures to account for the risk and cost of stale blocks. Payout schemes like Pay-Per-Share (PPS) or Full-Pay-Per-Share (FPPS) may factor in the expected stale rate to calculate a fair payout.

A high stale rate reduces the pool's effective revenue, which must be reflected in the payment to miners to maintain the pool's profitability and incentivize efficient mining practices.

What Role Does the Current Network Difficulty Play in the PPS Calculation?

What Is the Trade-off between Volatility and Expected Return in PPLNS versus PPS?

How Does a Miner Benefit from a Guaranteed Transaction Fee Payout under FPPS?

How Is the Reward Distributed among Pool Members (Payout Schemes)?