Deciding on the Best Payment Method: PPS+ vs PPLNS
Please note that the following article is an advertorial and does not reflect the views of Cryptonews.com.
In today’s Proof of Work (PoW) projects that support ASIC mining rigs, most miners choose to mine through mining pools like Foundry USA, AntPool, or ViaBTC. The introduction of ASIC mining rigs has significantly increased the overall hashrate of the network. However, for miners with only a few mining devices, the chances of finding a block on their own are very low.
Mining pools aggregate the hashrate of miners from all over the world, creating a powerful collective that makes it easier to solve hashing puzzles and mine multiple blocks in a short period. The rewards from these mined blocks are then distributed among all the participating miners in the pool.
In some cases, miners may connect 10 mining rigs to the pool, while others may only connect 1. The question then arises: how can this unequal contribution be fairly distributed among the miners for mining rewards?
To address this issue, various payment models have emerged in the market since the inception of the first mining pool in 2010. Currently, the most commonly used payment models are PPS+ and PPLNS.
PPS+ (Pay Per Share+) is a payment model introduced by ViaBTC Pool in August 2016 as an improvement to the traditional PPS payment model. It allocates transaction fees in addition to coinbase rewards. Under PPS+, miners receive rewards for each share they submit, regardless of whether the pool successfully mines a block. Extra transaction fees are also allocated based on the transaction fees included in the mined blocks according to the PPLNS payment model.
The key feature of PPS+ is its stability and predictability. Regardless of the mining pool’s luck, miners can enjoy a consistent mining income.
On the other hand, PPLNS (Pay Per Last N Shares) is a payment model that depends on the most recent N shares. Miners’ earnings are based on the valid shares they contribute when the pool successfully mines a block. The rewards are distributed based on the proportion of shares submitted by each miner within these N shares. Compared to PPS+, the PPLNS payment model is more volatile, with mining rewards potentially being either high or low.
So, how should miners choose the best payment model for themselves? It depends on their preferences and risk tolerance.
If miners prefer stable income and predictability, PPS+ is the more suitable choice. PPS+ provides a continuous fixed return, making it suitable for miners who are unwilling to take on significant risks.
On the other hand, if miners are willing to take risks for higher returns, PPLNS may be more suitable. PPLNS can yield higher rewards when blocks are successfully mined, making it suitable for miners who are committed for the long term and have confidence in the mining pool.
It’s important for miners to understand the advantages and disadvantages of each payment model before making a decision.
ViaBTC’s KAS mining pool now supports the PPS+ payment model, giving KAS miners the option to select PPS+ as their payment mode.
ViaBTC, founded in May 2016, has provided professional and efficient crypto mining services to over one million users in 130+ countries/regions worldwide. With a cumulative mining output value of tens of billions of dollars, ViaBTC is a world-leading mining pool that offers services for more than ten mainstream cryptocurrencies, including BTC, LTC, and KAS. Backed by one-stop services covering ViaBTC Pool, CoinEx Exchange, and CoinEx Wallet, ViaBTC aims to provide global users with better supporting tools, stable and efficient mining services, and an improved product experience.
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Please note that the above text is an advertorial and does not reflect the views of Cryptonews.com.
