Post
Topic
Board Pools
Re: [BitAffNet] How we're the #1 Bitcoin Mining Pool In The World (proof inside)
by
jonnybravo0311
on 18/03/2015, 13:50:06 UTC

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.

The Sun God is a fun God Ra Ra Ra

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