Bitcoin mining pools are essential for miners to work together in order to increase their chances of earning rewards and making a profit. When joining a mining pool, miners should consider the payout method used by the pool. There are various payout methods available, each with their own advantages and disadvantages. In this article, we will discuss the different Bitcoin mining pool payout methods available, and provide a brief summary of each one.
Pay-per-share (PPS)
PPS is a simple payout method that pays miners a fixed amount for every share they contribute to the pool. This payout method guarantees a payout for every share, regardless of whether the pool finds a block or not. However, this payout method may result in higher fees due to the added risk that the pool takes on.
Full pay-per-share (FPPS)
FPPS is a variation of PPS that pays miners the full block reward, including transaction fees, for each share they contribute to the pool. This payout method provides a more stable income for miners, but may result in higher fees due to the added risk that the pool takes on.
Proportional
Proportional is a payout method that pays miners based on the proportion of shares they contribute to the pool. This payout method is fairer to miners who contribute more work to the pool, but may result in lower payouts for miners who contribute less work.
Shared Maximum Pay Per Share (SMPPS)
SMPPS is a payout method that pays miners based on the maximum amount of shares they contribute to the pool. This payout method provides a more stable income for miners, as they are guaranteed to receive a payout for every share they contribute to the pool.
Pay-per-last-N-shares (PPLNS)
PPLNS is a payout method that pays miners based on the last N shares they contributed to the pool. This payout method encourages miners to stay with the pool for longer periods of time, as their payouts increase the longer they stay with the pool.
Double geometric method (DGM)
DGM is a payout method that combines the benefits of PPS and PPLNS. This payout method pays miners a fixed amount for each share they contribute to the pool, as well as a variable payout based on the last N shares they contributed to the pool.
Triplemining
Triplemining is a payout method that pays miners based on the proportion of shares they contribute to the pool, as well as a fixed amount for every share they contribute. This payout method encourages miners to contribute more work to the pool, as they are guaranteed to receive a fixed payout for every share they contribute.
Bitcoin Reward
Bitcoin Reward is a payout method that pays miners a fixed amount of Bitcoin for every block that the pool finds. This payout method provides a more stable income for miners, but may result in lower payouts overall.
Score-based
Score-based is a payout method that rewards miners based on the score they earn for finding shares. This payout method encourages miners to find high-quality shares, as these shares have a higher score and result in a higher payout.
Pay-per-share shift (PPS+)
PPS+ is a payout method that pays miners a fixed amount for every share they contribute to the pool, as well as a variable payout based on the last N shares they contributed to the pool. This payout method provides a more stable income for miners, and encourages them to stay with the pool for longer periods of time.
Randomized payment model
Randomized payment model is a payout method that randomly selects a miner to receive the block reward, based on the proportion of shares they contribute to the pool. This payout method provides an element of chance, which may be appealing to some miners.
Targeted payout model
Targeted payout model is a payout method that allows miners to set a target payout amount, and the pool will pay out when the miner reaches that target amount. This payout method is appealing to miners who want more control over their payouts.
Equalized shared maximum pay per share (ESMPPS)
ESMPPS is a payout method that pays miners based on the proportion of shares they contribute to the pool, as well as a variable payout based on the maximum amount of shares contributed by any miner in the pool. This payout method provides a more balanced payout for miners, and ensures that all miners in the pool receive a fair share of the rewards.
Pay-per-hash
Pay-per-hash is a payout method that pays miners a fixed amount of Bitcoin for every hash they contribute to the pool. This payout method encourages miners to contribute more computational power to the pool, as they are guaranteed to receive a fixed payout for every hash they contribute.
Shared maximum pay-per-last-N-shares (SMPPS-N)
SMPPS-N is a payout method that pays miners based on the maximum amount of shares they contribute to the pool, as well as the last N shares they contributed to the pool. This payout method provides a more stable income for miners, and encourages them to stay with the pool for longer periods of time.
Decentralized mining protocol (DMP)
DMP is a payout method that allows miners to participate in a decentralized mining network, where they are paid based on the proportion of work they contribute to the network. This payout method is appealing to miners who want to participate in a more decentralized mining process.
Pooled mining with central trust (PMCT)
PMCT is a payout method that allows miners to participate in a centralized mining pool, where they are paid based on the proportion of work they contribute to the pool. This payout method provides a more stable income for miners, but may result in lower payouts overall.
Pay-per-share time-based (PPS TB)
PPS TB is a payout method that pays miners a fixed amount for every share they contribute to the pool, as well as a variable payout based on the amount of time they spend mining. This payout method provides a more balanced payout for miners, and ensures that all miners in the pool receive a fair share of the rewards.
Pay-per-n-shares (PPNLS)
PPNLS is a payout method that pays miners based on the number of shares they contribute to the pool, as well as a variable payout based on the last N shares contributed by the pool. This payout method encourages miners to contribute more work to the pool, as they are guaranteed to receive a payout for every share they contribute.
Geometric reward system (GRS)
GRS is a payout method that rewards miners based on the quality of shares they find, with higher-quality shares earning a higher payout. This payout method encourages miners to find high-quality shares, and ensures that they are rewarded for their efforts.
When choosing a Bitcoin mining pool, miners should consider the payout method used by the pool, as well as other factors such as the pool’s fees, reputation, and reliability. It is important for miners to choose a pool that offers a payout method that best suits their mining strategy and goals.
