Quote from: mysidia on June 13, 2014, 05:40:14 AM

The pools really ought to give some small reward to the miner who found the block, such as an extra 0.1BTC for being the lucky finder of the block.

Otherwise.... all the small time miners are better off witholding and discarding the block that they solved, instead of sharing with the network; in case they do find the solution.. so although the pool as a whole will be slightly less profitable... lower network difficulty, that way

What good would the small time miners be doing for themselves if they withheld a block? Ignoring the fact that most small miners would not have the technical inclination as to how to withhold blocks, they would still lose out over the long run as they would receive a lower amount of payouts.