Luxor
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Luxor

As we continue to build out Luxor’s mining pool offering for our community we are increasingly looking at various payment methods for miners. One of the methods we are exploring is FPPS (Full Pay per Share Plus). Given that most of our pools have been operating on a PPS basis we figured it would be great to have a clear explanation for our community on the difference.

In Part 1 of this series we explored the difference between PPS and PPLNS. We also defined key terms such as Block Reward, Hashing Power, Luck and Mining Pools. Please refer to the previous article for background on the above.

An additional concept we would like to introduce further is mining revenue. Mining revenue generally consists of two parts, (1) the block reward (current bitcoin block reward is 6.25 bitcoin) paid by the network to the miner and (2) the transaction fees paid by the users to the miner. So when a miner successfully finds a block they are awarded all of the transactions fees in that block + the reward from the network.

Company Background

Luxor is a Seattle-based mining pool operater. If you are interested in getting news from the Mining industry subscribe to our free bi-weekly newsletter here. We cover the latest news from the manufactures, mining farms, pools, rig price changes and more.

We also run Hashrate Index, a data website that tracks how much mining pools on aggregate are paying out to miners on an FPPS method here.

FPPS Payment Method over Time

Pay Per Share Plus (PPS+)

PPS+ was first introduced in the end of 2016 and can be thought of as a combination of the PPS and PPLNS payments.

  1. Miners are paid by the pool for each valid share that they submit to the pool (whether or not the pool finds a block)
  2. Miners are also paid a portion of the transaction fees that their pool finds based on a PPLNS method (only when the pool finds a block)

The combination of the two gives miners the stable and predictable block reward payments of PPS, with an additional transaction fee payment based on the PPLNS calculation method.

Full Pay Per Share Plus (FPPS)

FPPS is a suped up version of PPS. It is PPS on both block reward and transaction fees

  1. Miners are paid by the pool for each valid share that they submit to the pool (whether or not the pool finds a block)
  2. Miners are also paid the expected transaction fees of the network based on the past 24 hours(whether or not the pool finds a block)

The combination of the two gives miners the most stable and predictable total payments of PPS.

Which method is the best?

All payment methods have their merits and it is why many of them exist. FPPS is generally preferred by miners (holding all else equal) given they do not have to take on the additional risk of variance (luck) and they get paid out transaction fees. However, often time FPPS pools operate at a higher fee than PPS or PPLNS, giving miners a choice between payment methods and fees (amongst other considerations such as pool quality, community, support, UX, etc).

Luxor User Stats Page

Already a miner or interested in getting started?

We’re on Discord. Ping us there at https://discord.gg/5qPRbDS

Also follow us on Twitter for Pool Updates: https://twitter.com/LuxorTechTeam

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Luxor has spent the past 2 years building North America’s largest Bitcoin & Altcoin mining pools. Through mining thousands of blocks, we’ve gained a deep understanding in extracting and valuing hashrate.

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Luxor Tech

Luxor Tech

Luxor is a Bitcoin mining pool and full-stack crypto mining company. The financialization of hashrate starts with us. https://www.luxor.tech/

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