A Mining pools main objective is to source it’s miners computing power in to one big pool. When doing so the miners chance to actually win a block reward increases dramatically. When the block reward is won it needs to be divided fairly among the miners, based on each miner’s computing power contribution. Cryptocurrency Mining Pools uses a variety of different mining pool reward types to the achieve this. Below you will find information about all mining pool reward types and how they differentiates form each other.
Mining Pool Reward Types
CPPSRB – Capped Pay Per Share with Recent Backpay.
DGM – Double Geometric Method. A hybrid between PPLNS and Geometric reward types that enables to operator to absorb some of the variance risk. Operator receives portion of payout on short rounds and returns it on longer rounds to normalize payments.
ESMPPS – Equalized Shared Maximum Pay Per Share. Like SMPPS, but equalizes payments fairly among all those who are owed.
POT – Pay On Target. A high variance PPS variant that pays on the difficulty of work returned to pool rather than the difficulty of work served by pool.
PPLNS – Pay Per Last N Shares. Similar to proportional, but instead of looking at the number of shares in the round, instead looks at the last N shares, regardless of round boundaries.
PPLNSG – Pay Per Last N Groups (or shifts). Similar to PPLNS, but shares are grouped into “shifts” which are paid as a whole.
PPS – Pay Per Share. Each submitted share is worth certain amount of BC. Since finding a block requires
PROP – Proportional. When block is found, the reward is distributed among all workers proportionally to how much shares each of them has found.
RSMPPS – Recent Shared Maximum Pay Per Share. Like SMPPS, but system aims to prioritize the most recent miners first.
SCORE – Score based system: a proportional reward, but weighed by time submitted. Each submitted share is worth more in the function of time t since start of current round. For each share score is updated by: score += exp(t/C). This makes later shares worth much more than earlier shares, thus the miner’s score quickly diminishes when they stop mining on the pool. Rewards are calculated proportionally to scores (and not to shares). (at slush’s pool C=300 seconds, and every hour scores are normalized)
SMPPS – Shared Maximum Pay Per Share. Like Pay Per Share, but never pays more than the pool earns.