Quote from: Shattered on January 14, 2016, 10:35:28 AM

I still dont understand the formula that Genesis uses for payouts.
I have 1.55 TH/s of mining power currently.
At the current time difficulty of 113,354,299,801 I should be earning approx 0.006877 per day.
I usually receive payouts in the range of 0.001875
There is a significant difference in those numbers and i dont think it can be explained due to fees or difficulty.

I have emailed Genesis months ago regarding an explanation of how payouts are calculated and the response i got was:
Payouts are calculated based on User hashing power, BTC current difficulty, current days luck of finding a block and BTC current days price.

Ive noticed that when BTC price falls, my payoffs fall significantly and when price increases my payouts increase slightly.
Shouldnt my payouts be more tied to luck of blocks found and current days difficulty??

If i double my mining power right now, shouldnt my next days payout close to double also (if we assume there isnt an increase of difficulty and Genesis mining pools luck stays relatively the same)??

Based on what i have seen for the last 6 months, i dont really see any legitimate reason why anyone should continue to increase their mining power since it appears to honestly look like its literally throwing money in the trash...

Am i missing something here?

The payout structure has been discussed here several times. This is not from GM, but I have checked their payouts for a while to see if they are in line with what the say (they are). If found that the following calculation gives results that are close to the actual payout (out of my head):

daily payout = h / H * 3600 - m*h/p

h = your hashrate in GH/s
H = network hashrate in GH/s (based on the current difficulty e.g. 811,421,684 right now according to https://bitcoinwisdom.com/bitcoin/difficulty )
m = maintenance fee per contract (in USD per GH/s); you will find the value in your contract
p = price of Bitcoin in USD (take the weighted average price for bitstamp for example)

This explains your observation that the payouts go down when the BTC price falls. The reason is that electricity becomes (in relative terms) more expensive. The critical thing here is the maintenance fee. There was a good period where difficulty was very stable and mining contracts were profitable. Now with the recent increase of difficulty in the last 2 months contracts are getting under water. Recent contracts have a much lower maintenance fee, which is probably due to the arrival of newer technology.