What Is the Typical Fee Structure Associated with the PPS Model?
The PPS model typically has a higher fee structure compared to other reward systems like PPLNS. This higher fee, often in the range of 2% to 5%, is charged to the miner to compensate the pool operator for assuming the financial risk of guaranteeing payments and managing the variance of block finding.
The fee is deducted from the miner's earned reward.
Glossar
Higher Fee Structure
Cost ⎊ A higher fee structure represents a pricing model where a service provider, such as a mining pool or derivatives exchange, charges above-average rates for its services.
Pps Model
Model ⎊ The Pay-Per-Share (PPS) model is a mining pool payout structure that offers miners a fixed, predetermined payment for each valid share of work they submit, irrespective of whether the pool successfully finds a block.
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.
Fee Structure
Allocation ⎊ Fee structures within cryptocurrency, options trading, and financial derivatives represent the systematic distribution of costs associated with executing and maintaining positions, impacting net profitability and strategic decision-making.