Quote from: bbeesley on March 18, 2015, 03:10:14 AM

Quote from: kano on March 18, 2015, 02:43:40 AM

All PPS pools will eventually payout more than it mines if paying a 0% bonus, let alone a higher one.
There is a reason why PPS pools charge a fee and need a sizeable balance

I am confused about the first point...statistically speaking, over a period of time the luck should even out and even a PPS pool will "break even" yes?

the second point I understand...as we have experienced first hand, the pool needs to have a pretty good buffer to get over the unlucky humps

Let me expand a bit on kano's answer for you.

Statistically speaking, over time a PPS pool will be under 100% luck. Why? Orphans. Every pool, no matter how well connected to the network is in a race with every other pool to submit a block to the chain. Sometimes you're gonna lose that race. So, if you discount the race, then over time you'd expect a 100% average luck. Because of the race, you'd expect a less than 100% luck average over time.

That's why PPS pools typically charge fees - to cover the expected loss over time. Without those fees, then the coverage must come from the pool operator's pockets.

Quote from: kano on March 18, 2015, 05:26:38 AM

The Sun God is a fun God Ra Ra Ra

I almost spit my coffee onto my laptop... too funny!