Skip to main content

How Is the Pool Fee Structured to Ensure the Operator’s Profitability?

The pool fee is structured as a percentage of the total block reward (subsidy plus transaction fees) and is set high enough to cover the pool's operational costs, including infrastructure, development, and maintenance, plus a profit margin. In PPS/FPPS schemes, the fee is also set to account for the risk capital required to cover periods of bad luck.

By operating at scale and having a consistent fee, the operator ensures long-term profitability despite short-term variance.

What Is “Pool Variance” and How Does It Affect Mining Profitability?
What Is a Block Reward in Cryptocurrency Mining?
If a Miner Finds a Valid Block Solution, How Does the Pool Ensure the Reward Is Properly Claimed?
What Is the Concept of ‘Expected Value’ in the Context of Mining Pool Risk Management?