SMPPS also never pays out more than the pool has. The reward system isn't the delay-- the payout system is. Generating all payouts means only 50 BTC can be paid at once, even if there's 51 BTC passing the minimum payout at once.
Hmm, I think I understood it while typing this out. After some point, all 50 BTC earned in a block will be paid out because it meets the payout threshold. But the pool buffer that you've built up to this point is basically yours to keep, since it can never be withdrawn from anyway. Do I understand this right?
Yup, that you do.
Do some calculations on it and you'll find that the pool owner has over a thousand bitcoins in his wallet. There have been lots of streaks of good luck that paid off the debt and then only paid out a few bitcoins, the rest going to luke.
That "buffer" is a laughable name for his pocket, were it a buffer the server wouldn't be 6-10 blocks in the hole right now.
What we have right now with this payout system is a system that works great for everybody with good luck, and poorly for the miners (but fine for luke) with bad luck.
(Easy to calculate his pocket, take all the blocks that paid less than 50 to users and add the amount not paid to users together. Just like the "buffer" does, except don't subtract from the buffer on blocks that award >50 bitcoins)
I'd like to see the 1000-2000 in lukes pocket put into a real buffer, personally.
I really like the system other than that part.