FPPS VS PPS+ Check which mining pool model has higher profit!

Miners who have just entered the mining circle will definitely be overwhelmed by the wide variety of mining pools’ profit models. Even many experienced miners have only a vague understanding of the characteristics of the two profit models of FPPS and PPS+.

"Tiao SIr" will give a detailed introduction to the two different revenue models of FPPS and PPS+. Which settlement method has higher revenue? What are the characteristics of the two?

Before introducing FPPS and PPS+ in detail, Sir would like to explain the PPS settlement method.

The mining pool calculates its own theoretical coinbase revenue during this period ( theoretical number of blocks produced by the mining pool * coinbase reward ) , and then distributes the rewards to miners according to the proportion of miners' computing power in the mining pool's computing power ( miners' computing power/mining pool's computing power) .

Note: Theoretical number of blocks in a mining pool = Theoretical number of blocks in the entire network * (mining pool computing power/entire network computing power)

It can be seen that the PPS mining income is only distributed to the coinbase rewards obtained from the block explosion, and is only related to objective factors such as the mining difficulty at the time of mining, the computing power and connection status of the mining machine, and has nothing to do with the luck value of the mining pool.

Both FPPS and PPS+ settlement methods are derived from PPS. On the basis of PPS, FPPS and PPS+ use two different distribution rules to distribute the mining fees obtained from block explosion to miners. Therefore, both modes increase a part of mining income more than PPS.

The two modes have the same distribution of coinbase rewards, so when comparing the benefits of PPS+ and FPPS, we mainly compare the distribution rules of the mining fees of the two modes.

The mining pool first calculates the sum of all mining fees for the blocks mined in the mining pool on that day, and then distributes this part of the reward to the miners based on the proportion of the miner's computing power in the mining pool's computing power, that is, (miner computing power/mining pool computing power).

The income from PPS+miner fee is affected by the actual block generation of the mining pool. The miner's income is proportional to the number of blocks generated by the mining pool, so the income is related to the luck value of the mining pool.

To use FPPS, we need to first calculate the average mining fee for the entire network on that day. The calculation method is to delete the data with the highest 5% and the lowest 5% of the mining fee for the entire network on that day, and calculate the average of the remaining data.

The mining pool calculates its theoretical income from mining pool mining fees during this period, which is (theoretical number of blocks in the mining pool * average mining fee of the entire network on that day), and then distributes the rewards to miners according to the proportion of miners' computing power in the mining pool computing power, which is (miners' computing power/mining pool computing power).

Note: Theoretical number of blocks in a mining pool = Theoretical number of blocks in the entire network * (miner computing power/mining pool computing power)

The FPPS mining fee distribution method is similar to the PPS distribution method of coinbase rewards. Both mining pools calculate their own theoretical profits based on the theoretical value of the entire network, and distribute them according to the proportion of miners' computing power in the mining pool's computing power.

The difference is that Bitcoin's coinbase reward is currently fixed at 12.5 BTC, and the mining fee needs to be averaged over all mining fees in the entire network. Therefore, FPPS has nothing to do with the mining pool's block explosion or luck.

The PPS+ mining fee income is mainly affected by the luck value of the mining pool, and the FPPS mining fee income is mainly affected by the congestion of the entire network.

If the actual number of blocks mined by the mining pool is more than the theoretical number of blocks mined, and the mining fee of the mining pool is higher than the average mining fee of the entire network, then PPS+ will have a higher return. If the actual number of blocks mined by the mining pool is less than the theoretical number of blocks mined, and the mining fee of the mining pool is lower than the average mining fee of the entire network, then FPPS will have a higher return.

It can be considered that over a long period of time, the actual number of blocks mined by the mining pool is equal to the theoretical number of blocks mined. The average handling fee for mining pool blocks is the same as the average handling fee for the entire network. Therefore, as a stable miner, the income of PPS+ and FPPS modes will not be much different.

The settlement method is closely related to the miners' income. A deep understanding of the settlement method can enable miners to make the best choice when the network is congested or the luck value of the mining pool changes.