Mining Payout Schemas
Mining pools distribute block rewards and fees to participants according to a chosen payout schema. The schema determines how risk (variance) and reward (fees / stability) are allocated between miners and the pool operator.
Schema Comparison
| Schema | Description | Variance | Fees | Transaction Fees |
|---|---|---|---|---|
| PPS | Pay Per Share — fixed payout per valid share submitted | None to miner | Higher | Excluded |
| FPPS | Full PPS — fixed payout including transaction fees | None to miner | Higher | Included |
| PPLNS | Pay Per Last N Shares — payout when block found, based on recent share window | High | Lower | Included naturally |
| TIDES | Transparent Income-Dividend Even-Share (Ocean.xyz) | Moderate | Lower | Included, transparent |
| Solo | No pool; miner keeps entire block reward | Extreme (all or nothing) | None | Full |
Risk Transfer
- PPS / FPPS — pool operator absorbs variance risk; charges premium
- PPLNS / TIDES — miners share variance; operator takes smaller cut
- Solo — miner assumes all risk and all reward
Choosing a Schema
- Stable electricity / large farm → PPLNS or TIDES (lower fees over time)
- Unstable costs / small operation → FPPS (predictable cash flow)
- Philosophical / sovereignty → Solo or DATUM-backed pooled solo via Ocean.xyz
Relevant Entities
- Ocean.xyz — TIDES and DATUM solo/pooled options
- BitAxe — low-power hardware where fee optimization matters
- public-pool.io — pure solo, zero pool fees
References
- Meetup #30: Decentralized Mining Workshop ^[raw/decentralized-mining-workshop-meetup-30.md]