PROP, PPS, and PPLNS are different methods used to calculate rewards for cryptocurrency miners.
PROP (Proportional): Miners receive a reward proportional to the amount of work they contribute to the pool.
PPS (Pay Per Share): Miners receive a fixed amount for each valid share submitted to the pool. This method offers a more predictable income for miners, but can be riskier for the pool operator.
PPLNS (Pay Per Last N Shares): Miners receive a reward based on the number of shares they’ve submitted in the last N shares, rather than their overall contribution to the pool. This method can offer higher rewards for miners who persistently contribute to the pool, but can also be more unpredictable.
Each method has its own advantages and disadvantages, and the choice of which one to use depends on the individual miner’s preference and the pool’s setup.
Or, to put in slightly different words:
PROP, PPS, and PPLNS are different reward calculation methods used in cryptocurrency mining pools. These methods determine how miners are rewarded for the computational power they provide to the pool.
PROP (Proportional): This method is based on a miner’s contribution to the pool. The miner is rewarded a portion of the block reward that is proportional to the amount of computational power they contributed to the pool in comparison to the total computational power of the pool. For example, if a miner provides 10% of the total computational power of the pool, they would receive 10% of the block reward.
PPS (Pay Per Share): This method is a fixed reward system, where miners receive a set amount for each valid share submitted to the pool. This method eliminates the variance in rewards, but can increase the risk for the pool operator as they are paying out rewards even if the pool does not find a block.
PPLNS (Pay Per Last N Shares): This method rewards miners based on the number of shares they’ve submitted in the last N shares, rather than their overall contribution to the pool. This method can offer higher rewards to miners who persistently contribute to the pool, but also increases the variability in rewards as it is dependent on the recent luck of the pool.
