Mining pools distribute rewards by splitting Bitcoin earnings proportionally to each miner’s contribution of computing power (hashrate).
The most common payout systems are PPS, FPPS, PPLNS, and PROP, each balancing stability, risk, and fairness differently.In short: you earn Bitcoin based on how much work your hardware contributes to the pool’s total hashrate.
The Basics of Pool Rewards
When a mining pool successfully mines a block, it earns:
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Block reward (currently 3.125 BTC post-2024 halving)
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Transaction fees from that block
The pool then distributes this total reward among its members based on their share of the pool’s total hashrate.
💡 Example:
If your miner provides 1% of a pool’s hashrate, you earn about 1% of the total rewards (minus small fees).
How Shares Work
A “share” is proof that your miner contributed valid work to the pool’s mining effort.
The more shares you submit, the higher your reward.
| Concept | Explanation |
|---|---|
| Hashrate | Your mining speed (e.g., 100 TH/s) |
| Share | Unit of contribution sent to the pool |
| Difficulty | Determines how much work each share represents |
| Reward Share | Your percentage of all valid shares submitted |
Mining pools count these shares over time to calculate your payout.
Common Reward Distribution Methods
| Method | Description | Pros | Cons |
|---|---|---|---|
| PPS (Pay Per Share) | Fixed payout per valid share submitted | Predictable income, no luck factor | Pool bears the risk |
| FPPS (Full Pay Per Share) | Includes block rewards + transaction fees | Higher payout, stable | Slightly higher pool fees |
| PPLNS (Pay Per Last N Shares) | Rewards depend on shares contributed before a block is found | Encourages loyalty | Payouts vary by luck |
| PROP (Proportional) | Rewards divided by total shares in each round | Simple and fair | Income fluctuates |
| SCORE | Rewards weighted by share timing (recent shares count more) | Reduces pool hopping | Complex calculation |
Most major pools today (Foundry, AntPool, F2Pool) use FPPS or PPS+, offering a good mix of fairness and consistency.
Example: Reward Calculation
Let’s assume:
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Pool finds a 3.125 BTC block
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Transaction fees = 0.3 BTC
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Total = 3.425 BTC
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Pool fee = 2%
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Your hashrate = 1% of the pool
Payout:
💡 So, if you provide 1% of the pool’s total hashrate, you receive ~0.033 BTC from that block.
Which Payout System Is Best?
| Goal | Best Method | Why |
|---|---|---|
| Stable, predictable income | PPS / FPPS | No dependency on luck |
| Long-term higher profit | PPLNS | Lower fees, better over time |
| Fair share per block | PROP | Simple and transparent |
| Avoiding pool hoppers | SCORE | Rewards consistent miners |
For most everyday miners, FPPS is the best balance — steady returns and inclusion of transaction fees.
Example: Popular Pools and Their Payout Models
| Pool | Model | Fee | Notes |
|---|---|---|---|
| Foundry USA | FPPS | 0–2% | Stable payouts, North American focus |
| AntPool | FPPS | 1–2% | Reliable and transparent |
| F2Pool | PPS+ | 2.5% | High reputation, detailed dashboards |
| ViaBTC | PPLNS | 2% | Long-term miners benefit most |
| Luxor Mining | FPPS | 1.5% | U.S.-based, renewable focus |
What Affects Your Final Reward
| Factor | Impact |
|---|---|
| Your hashrate | Higher hashrate = larger share |
| Pool luck | Affects PPLNS and PROP payouts |
| Uptime | Offline time reduces your shares |
| Pool fees | Typically 1–3%, deducted from rewards |
| Network difficulty | Higher difficulty = lower BTC earned per TH/s |
💡 Consistent uptime and efficient hardware can improve your total monthly BTC earnings by 5–10%.
Summary
Mining pool rewards are based on shared effort and transparent formulas.
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🧮 Your reward = (Your shares ÷ Total shares) × Pool reward
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💰 Payout systems vary — PPS and FPPS offer the most stability
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⚙️ Factors like uptime, fees, and difficulty affect income
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🌍 Choose reputable pools with transparent tracking and fair policies
Pooling rewards ensures steady Bitcoin income and keeps mining accessible to everyone — from hobbyists to large-scale farms.