There are a ton of mining pool “payment” methods, with more being added every day. I don’t want to get into the ten or more variations, which can be found here, so we will talk about the three most common, which are Prop, PPS, and PPLNS.
Prop (Proportional) Mining Pools
A proportional mining pool is very straight-forward and is used by Bytecoin.party. On a Prop Pool, you are paid for the valid shares you submit to the pool when a block is found. This results in each miner being paid for an exact amount based on how much “work” they put in. A Proportional pool is considered the fairest for a miner, but it also carries some risk for the Pool owner, as bad shares can cause the owner to pay out of pocket.
PPS (Pay Per Share) Mining Pools
PPS, also known as Pay Per Share, is one of the original mining pool methods. When mining on a PPS pool, each submitted share is worth a set amount. Since finding a block requires a certain amount of shares, on average, a PPS pool rewards miners with the current BCN reward divided by current difficulty. Running a Pay Per Share pools is risky for pool operators since they send payments prior to block rewards, and often they will have the highest hidden feeds. A 0% PPS pool can be one of the most rewarding though as you get an estimated amount based on the current max, but a 0 fee PPS pool is very hard to find. To sum this up, when your miner is connected to a PPS pool, your earnings will be directly based on the contribution (minus pool fees) regardless of luck figure.
PPLNS (Pay Per Last N Shares) Mining Pools
PPLNS Pools, or Pay Per Last N Shares, are very similar to Proportional Pools as they pay based on effort and not luck. In PPLNS mode, earnings are completely correlated with the earning a pool gains from a block. However, PPLNS differs from Prop because it pays based on effort over time and not the effort for the current block. PPLNS pools will reward long-term miners with more BCN than a short-term miner.
So what should you choose?
In the end, all methods used by pool mining will payout a very similar amount (excluding fees) but it’s a matter of how you want to receive payment. Some people like to get a small percentage over time at a small cost, and some miners would like to receive every coin that they’ve earned. Here at Party, we like to reward users for the effort that they put in and not based off of some number we made up in our heads, so we stuck with Prop mode. If you have any questions about mining methods, feel free to reach out, and as always PARTY ON MY FRIENDS!