Blockchain basics: A detailed explanation of mining pool profit-sharing models!

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In recent years (especially before the pandemic), **blockchain technology has developed rapidly**, and the **mining industry** has thrived. With the rise of cryptocurrencies such as **Bitcoin** and **Dogecoin**, mining activities surged, and GPU prices skyrocketed, turning graphics cards into luxury goods. Many early internet café owners who transitioned to mining have since become wealthy.

For most people, mining alone is not practical. Typically, miners rely on a **mining pool** to combine computing power and share rewards. As mining difficulty continues to increase, almost all miners now depend on pools for income. Therefore, before joining a pool, it’s essential to understand the **reward distribution models**.

Some cryptocurrencies are difficult or impossible to mine locally, which gave rise to **solo pools** (where you mine alone).

 **1.SOLO （Only you）**  
This model allows you to mine independently through a pool. Unlike local mining, you can connect multiple devices via different networks under one account. When a new block is mined, the pool deducts a small fee and sends the entire block reward to you. Generally, finding a single new block triggers a payout.  
Solo pool mining fees are typically low and depend on the resource costs of the specific coin.

 **2.PPS 工资池 （maybe best）**  
Under this model, the pool calculates payouts based on mining difficulty, block rewards, and share submission to provide a **stable and predictable income**.  
Your earnings are **not affected by the pool’s luck value**. If the pool doesn’t find a block, it bears the loss; if it finds one quickly, miners don’t gain extra.  
PPS offers **the most stable and reliable returns**, but usually with **the highest fees**. Unlike other models, PPS payments don’t require block confirmation.

 **3.PPLNS （Low pool fee）**  
This model introduces the concept of **luck value**.  
If the luck value is above 100%, it means the pool spent more time and effort to mine a block — miners lose.  
If it’s below 100%, the block was found faster — miners gain.  
PPLNS isn’t friendly to short-term miners since payouts depend on your contribution during a “window period.” Rewards may still arrive even after you stop mining.  
Over time, luck averages around 100%, making this model **low-fee and low-risk** for pools.

 **4.PROP （Late pay）**  
PROP works similarly to PPLNS, but payouts occur **after the block confirmation**.  
It’s fair (“pay per contribution”) but slower, especially for coins with long confirmation times (days or even weeks).  
The difference between PROP and PPLNS is mostly timing.

 **5.PPS+**  
PPS+ is used for coins with **high transaction fees**.  
Your mining rewards are calculated as in PPS, but **transaction fees are distributed via PPLNS**.  
For example, if 100 LTC are mined with a 1 LTC fee, the 100 LTC are shared through PPS, while the 1 LTC fee is split under PPLNS.  
It’s an **extended version of PPS**, balancing fairness and transaction costs.

 **6.RBPPS**  
RBPPS waits to confirm whether a block is valid (not dead or orphaned). Once verified, it pays out following PPS rules.  
The income and payout process are nearly identical to PPS but include extra **validation for safety**.

After understanding these **six main mining reward models**, you can compare mining pool payout systems, fees, and performance data at: [https://miningpoolstats.stream/](https://miningpoolstats.stream/)