How Is the Guaranteed Payout in PPS Calculated?
The guaranteed payout per share in the PPS scheme is calculated by dividing the expected block reward (including the base reward and expected transaction fees) by the expected number of shares required to find a block (the difficulty). This calculation provides a deterministic value for each share of work submitted.
The pool operator uses the current network difficulty and the coin's price to determine the fiat or crypto value of the payout.
Glossar
PPS Scheme
Distribution ⎊ PPS Scheme, or Pay Per Share, is a mining reward methodology guaranteeing miners a fixed payout for every valid share submitted, irrespective of whether the pool finds a block in that round.
PPS
Protocol ⎊ The term PPS, within cryptocurrency and derivatives contexts, frequently denotes a Payment Protocol Standard, a framework designed to facilitate atomic swaps between distinct blockchain networks.
Expected Block Reward
Incentive ⎊ Within cryptocurrency networks employing Proof-of-Work consensus mechanisms, the Expected Block Reward represents the anticipated remuneration distributed to miners for successfully validating and adding a new block to the blockchain.
Guaranteed Payout per Share
Payout ⎊ Guaranteed Payout per Share (PPS) defines a compensation model where a mining pool commits to a fixed, predetermined payment for every valid share of work submitted by a miner.
Guaranteed Payout
Certainty ⎊ Guaranteed payout structures, within cryptocurrency derivatives, represent a pre-defined return profile irrespective of underlying asset price movement, often achieved through combinations of options strategies or structured products.