What Is the Difference between the PPS and PPLNS Reward Systems in a Mining Pool?
Pay-Per-Share (PPS) offers a fixed payout for every share submitted, regardless of whether the pool finds a block. This shifts all variance risk from the miner to the pool operator.
Pay-Per-Last-N-Shares (PPLNS) pays out only when a block is found, and the reward is distributed based on the shares submitted in the last 'N' difficulty-adjusted shares. PPLNS is fairer over the long run but exposes miners to short-term variance.
Glossar
PPLNS Pool
Methodology ⎊ PPLNS (Pay Per Last N Shares) is a mining pool compensation methodology that calculates payouts based on the number of shares submitted by a miner over a specific time window, known as the "N" shares.
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.
Reward Systems
Design ⎊ Reward Systems are the economic frameworks that distribute protocol-generated value, such as transaction fees or inflation, to participants who provide essential services like block validation, liquidity provision, or data oracling.