Payout Methods in Bitcoin Mining Pools

Understanding payout methods is crucial for miners to maximize their earnings and manage their mining operations effectively. Here are the most common payout methods used by Bitcoin mining pools:

1. FPPS (Full Pay Per Share)
   • Description: Miners are paid a fixed amount for each share they contribute, including a share of transaction fees.
   • Pros: Predictable and stable payouts, lower risk for miners.
   • Cons: Generally comes with higher pool fees to cover the risk taken by the pool operator.
2. PPS (Pay Per Share)
   • Description: Miners receive a fixed payout for each share they submit, irrespective of whether the pool finds a block.
   • Pros: Immediate and guaranteed payouts.
   • Cons: Higher fees, as the pool assumes all the risk.
3. PPLNS (Pay Per Last N Shares)
   • Description: Miners are paid based on the number of shares they contribute to the last N shares of the pool, with rewards distributed when a block is found.
   • Pros: Potential for higher earnings during successful mining periods, lower pool fees.
   • Cons: Income can be irregular and depends on the pool’s success in finding blocks.
4. PPS+
   • Description: A hybrid model that combines PPS and PPLNS. Miners receive a fixed payout for their shares (PPS) plus a share of transaction fees based on PPLNS.
   • Pros: Provides stable income with additional transaction fee benefits, reducing overall risk.
   • Cons: Higher fees compared to standard PPLNS pools.
5. Score-based
   • Description: Miners are rewarded based on their contributions over time, with more recent shares being worth more to prevent pool-hopping.
   • Pros: Fairer distribution of rewards, discourages pool-hopping.
   • Cons: More complex to understand, payouts can vary depending on the time of contribution.

Example Pools and Their Payout Methods

• Foundry USA: FPPS, 0% fees.
• Antpool: PPLNS (0% fees) and FPPS (4% fees).
• ViaBTC: PPS+ (4% fees), PPLNS (2% fees), and SOLO (1% fees).
• F2Pool: FPPS (4% fees) and PPLNS (2% fees).
• Binance Pool: FPPS, 4% fees.
• SpiderPool: FPPS, 2% fees.
• Luxor: FPPS, 2.5% fees.
• EMCD: FPPS+, 1.5% fees.
• SBI Crypto: FPPS (1% fees) and PPLNS (0.5% fees).
• Braiins Pool: Score-based, now also FFP 2% – 2,5% fees.

This article will provide you a comprehensive understanding of how different mining pools operate and how miners can maximize their earnings based on their risk tolerance and preferences.