The emergence of ASIC mining rigs has significantly increased the overall network’s hashrate, with the vast majority of miners opting to mine through mining pools to increase their chances of finding a block. Rewards from mined blocks are distributed among all miners participating in pool activities. To address the issue of unequal contribution among miners in the pool, different payment models have been introduced since 2010. The five most common payment models used currently are PPS, PPS+, PPLNS, FPPS, and SOLO. PPS+ and PPLNS are the two most widely used models.
PPS+ is a payment model introduced by ViaBTC Pool in 2016, combining elements of PPS and PPLNS to distribute both coinbase rewards and transaction fees among miners. Under this model, miners receive rewards for each share submitted, regardless of whether a block is successfully mined. Transaction fees are also allocated based on the transaction fees included in mined blocks using the PPLNS model. This payment model provides stability and predictability in mining income for miners.
PPLNS, on the other hand, is a payment model that distributes rewards based on the most recent N shares contributed by miners when a block is successfully mined. Mining pools calculate rewards based on the proportion of each miner’s shares within the N shares, distributing rewards accordingly. This model is more volatile compared to PPS+ and can result in either higher or lower rewards for miners based on their share contributions.
When choosing a payment model, miners must consider their preference for stable income or willingness to take risks for higher returns. PPS+ is suitable for miners seeking a continuous fixed return, while PPLNS may offer higher rewards for miners willing to tolerate income fluctuations. Major mining pools like AntPool, ViaBTC, F2Pool, Binance Pool, and EMCDPool offer different payment models for miners to choose from based on their preferences and risk tolerance.
ViaBTC, a leading mining pool founded in 2016, provides professional and efficient crypto mining services to over one million users in more than 130 countries/regions. They offer services for mainstream cryptos like BTC, LTC, and KAS, with the recent implementation of the PPS+ payment model in the KAS mining pool. ViaBTC aims to offer global users stable and efficient mining services, supported by their one-stop services covering ViaBTC Pool, CoinEx Exchange, and CoinEx Wallet for a better product experience for miners.
