What Is the Trade-off between Volatility and Expected Return in PPLNS versus PPS?
PPLNS offers a higher expected return over the long term because the pool operator charges a lower fee, as the miners bear the block discovery risk. However, this comes with higher short-term volatility in earnings.
PPS offers lower volatility and more predictable income but with a lower expected return due to the higher fee charged by the operator for absorbing the risk.
