How Does the Variance in Block Discovery Impact a Miner’s Income under PPLNS?
Under PPLNS, income is directly tied to the successful discovery of blocks. If the pool experiences a period of 'bad luck' and finds fewer blocks than statistically expected, the miner's income will be lower during that period.
Conversely, a 'lucky' streak of finding blocks faster than expected will lead to a temporary increase in income. This variance introduces short-term unpredictability to a miner's earnings.
Glossar
Block Discovery
Provenance ⎊ Block discovery, within cryptocurrency and derivative markets, signifies the verifiable origin and chain of custody of digital assets, crucial for establishing trust and mitigating counterparty risk.
Income
Yield ⎊ Income, within the context of cryptocurrency derivatives, options trading, and financial derivatives, fundamentally represents the return generated from an investment or trading strategy.
Variance
Dispersion ⎊ In cryptocurrency, options, and financial derivatives, variance quantifies the degree to which returns deviate from their expected value, representing the inherent uncertainty within an asset’s price movements.