Why Are PPS Fees Typically Higher than PPLNS Fees? ⎊ Path

Why Are PPS Fees Typically Higher than PPLNS Fees?

PPS fees are higher because the pool operator assumes the entire risk of pool variance. The operator guarantees a fixed payment for every share, even if the pool is unlucky and takes a long time to find a block, or never finds one in that period.

This guarantee is essentially an insurance service for the miner, and the higher fee is the premium charged for that risk absorption.

What Are the Different Payout Schemes Used by Mining Pools (E.g. PPLNS, PPS)?

How Does the PPS Payout Scheme Transfer Risk from Miners to the Pool Operator?

What Is the Main Advantage of the PPS Method for a Miner Compared to a PPLNS Method?

How Does the PPLNS Method Distribute the Pool’s Luck Variance between the Operator and the Miners?

How Does a Bad Luck Streak in PPLNS Differ in Impact from One in PPS?

How Does a miner’S Individual Hash Rate Relate to Their Portion of the Pool’s Variance?

Explain the ‘Pay-Per-Share’ (PPS) Method of Reward Distribution in Mining Pools

What Is the Difference between PPS and PPLNS Mining Pool Reward Systems?

Glossar

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.

Fees

Definition ⎊ Fees represent the charges levied by exchanges or protocols for executing transactions and providing services within cryptocurrency and derivatives markets.