What are cryptocurrency mining pool payment reward systems?

As Btmminer, Payment systems are a bit of a technical subject, but we will talk about these systems at a basic level that all our customers can understand. One of the parameters necessary to determine which pond you can dig more profitably is the payment system. For ease of calculations, service interruptions (fee) made by the pools are sometimes ignored.


It is the easiest payment method. In this system, payments are divided into several different phases. Phase 1 is the time elapsed between the time the pool finds a block and the next block. At the end of each phase, the pool receives the reward from the block, deducts it, and distributes the remainder in proportion to the hash power each miner has added to the pool during the phase. Sample;

B= Reward f= fee N: Total share n: share of each miner
The gain from the block to the miner will be: (1-f).B.n/N.

However, in this system; A miner who can strategically calculate when to mine which pool and where to direct his hash power will earn more than he deserves. Someone who mines in that pool for a long time and continuously will earn less because of the person who comes later and mines for a short time. The transition of miners from pool to pool by evaluating these gaps in the pools is called pool hopping.

In this system, the gain is high in short phases and low in long phases. No one can know the future, but the number of shares registered in that phase of the pool can give us an idea about the length of the next phase.


In this system, the operator plays a more active role than the proportional system. When a miner is included in the system, the payment is made immediately according to his share in the pool. The value of this payment is the current expected value per share. In this system, it does not matter whether there are blocks or how many blocks there are. Each shareholder participating in the pool receives a predetermined value (according to the expected value) in advance. In this system;

Variability in pay-per-share is almost nil. (although there are some changes these are considered insignificant)
There is no need to have a block to get paid.
Determining the exact payment to be received is easy.
It protects you from scammers as payments are made immediately.
Miners do not suffer a loss due to inter-pool splashing.

But this system is very risky for the pool owner. Since it offers a zero-variable system to miners, it will have to meet all the variables that may/may occur. Average payments per share will be low in the short phase, but in the long phase (unlucky block) or orphaned block, this system can cause significant losses to the operator. The pool can increase the amount of cuts to accommodate these changes. This reduces the profits of the miners. If the pool cannot balance this issue, it will go bankrupt.


It is built on the proportional payment method. Each shareholder is scored based on the time spent in the pool from the beginning to the end of the phase. Payment is made according to the points they get. However, in this system, scoring can be calculated consistently some time after the phase starts. This causes the employees to earn more profit in the beginning. Although it is not as vulnerable as the proportional method, it cannot completely prevent inter-pool splashing. Another shortcoming is that the current difficulty is not taken into account in the score calculations.


In this system, the pool makes two kinds of interruptions.

Fixed deduction : The fixed amount taken from each block.
Variable Deduction: It is the score determined automatically by the pool at the beginning of each phase (according to the expected block value)

The shorter the phase, the higher the variable interruption applies. Since this deduction rate is clear from the beginning, there will be no injustice between those who enter the pool before or after.


In this system, “N” is a fixed or variable number that depends on the pool. When the block is found, the payment is made by going backwards by “N” number/time starting from the last registered share. Shares other than this “N” will not be paid. However, the number “N” can also go up to the shares in the previous block. This causes him to pay twice. In this system, if you reach the end of the block finding process, you will get your share, but in a long phase, there is a risk that those who enter and leave at the beginning will not get a share. It gives good profit in long-term continuous excavations.


The only difference from the above is that the shares of the shareholders are grouped and paid.


It uses both the PPS system and the proportional system at the same time. At the time of payment, whichever value (PPS or proportional) is lower, it pays at that value. The pool does not lose money in this system. But this system has a few errors:

Miners earn less because the lowest of the two factors pays.
The prize to be received in the PPS method does not depend on the luck of the pool. In the proportional method, if the pool is lucky, the reward will be high, and if the pool is unlucky, the reward will be low. MPPS’d

If e, the prize will not change even if the pool is lucky, but if the pool is unlucky, the prize will be reduced.
It cannot completely prevent splashing between pools. Someone who gets a high proportional share early in the stage may escape the pool early.

The reward for each share participating in the pool is determined as in the PPS system. But unlike PPS, the pool here does not pay without generating income from the block. If the pool can meet all the PPS with the income from the block, it pays them. If he cannot afford it, he distributes the amount in his hand proportionally. The difference is written as a credit to the miners and they are tried to be paid with the income to be obtained from the next block. The total amount of rewards received by the pool and the total PPS paid to miners are kept in a buffer. This can give miners an idea about whether the income the pool will generate from the next block will be enough to distribute. This cannot completely prevent splashing between pools.


In this system, there is a difference in the payment of the miners’ receivables. The pool uses this system to distribute payments fairly. If a miner has received 95% of the PPS payment, other miners will not get paid until they have received 95%. The remaining 5% receivable is paid until it is completed at the rates determined in each phase.


In this system, the pool pays the PPS as much as it can, but if it cannot meet these PPS, it does not write it as a credit to the miners.


The only difference from SMPPS is; It pays the miners’ receivables (remaining from PPS) backwards from the last share with the logic of last in, first out.


This system is set to pay miners maximum PPS. In this system, the pool does not owe miners and all PPS are paid. If the coin increases, it is added to the next block reward. It makes all payments backwards, starting with the last share.


It was created by taking the useful aspects of PPLNS and the geometric method. In this system, the operator has the opportunity to absorb the risks/variables that may occur in the short and long phases. In this system, the pool allocates a certain percentage from the short-term income and uses this amount to cover its long-term losses/facilitate their payments. In this system, reward time and variables/variances are independent of the pool’s history and difficulty changes. This significantly prevents splashing between pools.


It is a highly variable payment system. Pays more for stakes on higher difficulties. It is like a game of chance that gives the big prize to the one who finds the block. It is a kind of PPS with high bias based on the difficulty sent back to the pool rather than the difficulty presented to the miners by the pool.

Here is a link to help you understand which of these payment methods might be beneficial for you.
The graphic in this link will help you determine which method will save you how much depending on the time you dig.

As far as we know, we have tried to explain the payment methods to you. We hope it was useful. If there is a payment method that we specified incorrectly or in our description, please help us to correct it.

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