What Are the Common Payout Schemes Used by Mining Pools?
Common schemes include Pay-Per-Share (PPS), which pays a fixed amount for each share submitted, regardless of whether the pool finds a block. Full Pay-Per-Share (FPPS) adds the transaction fees to the PPS calculation.
Proportional (PROP) pays miners a share proportional to their contributed work when a block is found. Pay-Per-Last-N-Shares (PPLNS) calculates shares based on a sliding window of recent shares to mitigate pool hopping.
Glossar
Pplns Schemes
Scheme ⎊ PPLNS schemes, or Pay-Per-Last-N-Shares, represent a class of mining pool compensation models designed to reward miners based on their proportional contribution over a rolling window of shares, not just the shares submitted for the immediately preceding block.
Payout
Delivery ⎊ The final payout represents the culmination of the option contract, involving the transfer of the underlying asset or a cash equivalent from the losing party to the winning party upon exercise or expiration.
Payout Schemes
Mechanism ⎊ Payout schemes, within cryptocurrency, options trading, and financial derivatives, represent the pre-defined rules governing the distribution of profits or losses to participants based on the outcome of an underlying asset or event.
PPS Payout Scheme
Mechanism ⎊ The Pay-Per-Share (PPS) payout scheme is a mining pool reward distribution mechanism that guarantees a fixed, calculated payout for every valid share submitted by a miner, regardless of whether the pool successfully finds a block.