Understanding Pool Fees and Payment Schemes: Maximizing Earnings

Understanding Pool Fees and Payment Schemes

Maximize your mining earnings with smart pool selection. Understand pool fees and payment schemes for optimal profitability.

Bitcoin mining is a dynamic and competitive industry, and joining a Bitcoin mining pool is crucial for maximizing earnings with Antminer S19 series miners. In this comprehensive guide, we will delve into the world of pool fees and payment schemes, exploring their impact on mining profitability and providing strategies to optimize earnings.

Pool Fees Explained

Mining pools provide valuable services to miners by pooling their hash power and increasing the chances of successfully mining a block. In exchange for their services, mining pools charge pool fees. These fees cover various expenses, including maintenance, server infrastructure, security, and customer support. Pool fees are typically deducted from the miners’ rewards and play a crucial role in sustaining the operations of the mining pool.

Types of Fee Structures

  1. Fixed Fees: Some mining pools charge a fixed fee, which is a predetermined amount deducted from the miners’ rewards for each share submitted. This fee structure ensures transparency, as miners know the exact amount they will be charged for participating in the pool.
  2. Percentage-Based Fees: Other pools charge a percentage fee, where a certain percentage is deducted from the miners’ earnings. The percentage may vary among pools and can range from a fraction of a percent to several percent. This fee structure is based on the miners’ earnings and is proportional to the rewards they receive.
  3. Combination Fee Structures: Some pools adopt a combination of fixed fees and percentage-based fees, providing flexibility in fee calculation. For example, a pool may charge a fixed fee per share and a small percentage fee on top of that.

Importance of Understanding Pool Fees

Understanding pool fees is essential for miners to evaluate the profitability of participating in a specific mining pool. By considering the fee structure, miners can calculate the impact of fees on their earnings and determine whether the potential rewards outweigh the costs. Miners should assess the fee structure in conjunction with other factors such as the pool’s reputation, payment scheme, and overall profitability.

Miners should also keep in mind that the lowest fee does not necessarily guarantee the highest profitability. It is crucial to strike a balance between fees and other factors, such as the pool’s reliability, size, and overall performance. Additionally, miners should consider long-term factors such as the pool’s track record, security measures, and ongoing development to ensure a sustainable and profitable mining experience.

By understanding pool fees and their implications, miners can make informed decisions when choosing a mining pool, ultimately maximizing their earnings with Antminer S19 series miners.

Payment Systems

Understanding Pool Fees and Payment Schemes: Maximizing Earnings

There are over 15 payment systems but the majority of pools operate on a PPS, FPPS, PPS+ and PPLNS basis. The difference of these will be explored in more detail than the rest.

Pay-Per-Share (PPS)

Pay Per Share, also referred to as PPS, provides an immediate flat payout for each share that is resolved.

Reverting to the lottery example, suppose a miner sends 1 lottery share to the pool operator. If there are 10 total tickets, even if the pool doesn’t win the lottery, the miner will still receive 10% of the block reward. The miner is compensated according to what is statistically likely rather than what actually happens. Consider a scenario where a miner sends in a single ticket and it ends up being the winning one. Even so, the miner only gets 10% of the block reward.

What this system ultimately does is take out the “luck” and hence variance in a miners payout. Instead, the pool operator takes on all of the variance risk. Although there may be a lot of variance in the short term, in the long run it should balance out to the statistical mean (obtain 10% of blocks).

Logically, the pool’s current cryptocurrency balance is used to offer the miner’s payout right away. Timing attacks and the pool operator defrauding the miners are not even a possibility.

Due to the variance, this payment structure carries a higher risk for pool operators. The variance risk can typically only be taken on by large pools with a lot of reserves.

For alt-coins, PPS is a very popular payout method, but not for Bitcoin, as is further explained below.

Full-Pay-Per-Share (FPPS)

PPS pays the miner the expected value of the block reward. Block rewards, however, only make up a small portion of miner earnings. Transaction fees make up the other portion.

While FPPS and PPS are similar, the former also pays out for transaction fees in addition to the expected block reward. Within a specific time frame (typically the previous 24 hours or the previous day), FPPS determines a standard transaction fee and distributes it to miners.

By disbursing transaction fees, FPPS raise the income of the miners.

Pay Per Last N Shares (PPLNS)

Pay Per Last N Share, also known as PPLNS, is another well-liked payment method that pays miners as a percentage of the shares they add to the total number of shares (N).

In most cases, luck plays a role in the number of shares that are submitted during a round (the period of time it takes to find 1 block). PPLNS, on the other hand, takes into account a fixed number of shares (N) that are not restricted by the round boundaries. In this instance, N shares stand for a predetermined number of shares that are not determined by chance. N is frequently set to be twice as challenging. With this payment structure, you gain shares as you mine, so the more hashes you complete, the more shares you gain.

Only blocks that are actually discovered (as opposed to those that are merely statistically probable) are paid out. If your pool is able to win the lottery (find a block), and you commit 1 ticket (a share) to a total of 10 (N) tickets, your payout will be 10%.

Using this system actually favors constant loyal pool members over pool hoppers because miners aren’t incentivized to “quick mine” by mining on round with low amounts of shares.

Pay-Per-Share + (PPS+)

PPS+ is a combination of PPS and PPLNS.

In a manner similar to PPS, the block reward is distributed based on the expected value. The Transaction fees “+” are paid out on a PPLNS method, which means that miners receive a share of the pool’s transaction fees according to the amount of hashrate they contributed.

Which Payment Method is Best?

Given that they do not have to assume the additional risk of variance (luck), miners typically prefer FPPS (all other things being equal). If the mining pool is big enough to find blocks consistently, PPS+ is typically acceptable.

Since FPPS presents the greatest risk to a pool operator, its costs are typically a little higher. Since the pool operator faces little to no risk when operating a PPLNS pool, the costs may be extremely low.

Read more: PPLNS VS PPS: Which is the Better Mining Pool Payment Methods

Factors to Consider in Pool Selection

BEST Bitcoin Mining Pools for Bitmain Antminer S19 Series

Pool Reputation and Track Record: When choosing a mining pool, it’s important to consider the pool’s reputation and track record. Look for pools that have been operating for a significant period and have a positive reputation in the mining community. This can help ensure that the pool is reliable, trustworthy, and has a history of secure operations.

Pool Size and Hashrate: The size and hashrate of a pool can have an impact on your mining earnings. Larger pools typically have more mining power, which increases the chances of finding blocks more frequently. This can lead to more consistent and predictable payouts. However, keep in mind that larger pools also have more participants, which means the rewards are divided among a larger number of miners. Smaller pools, on the other hand, may offer higher rewards if they successfully mine blocks, as the rewards are divided among fewer participants.

Payment Scheme: Different pools offer different payment schemes, and it’s important to understand them before making a choice. The most common payment schemes include Pay-per-Share (PPS), Pay-per-Last-N-Shares (PPLNS), and Proportional. PPS offers fixed and instant payouts for each share submitted, regardless of whether a block is found. PPLNS provides variable payouts based on the number of shares contributed, and Proportional distributes rewards based on the miner’s contribution to finding a block. Consider the pros and cons of each payment scheme and choose one that aligns with your mining goals.

Maximizing Earnings with Pool Selection

Choosing the right mining pool is crucial for maximizing your earnings with Antminer S19 series miners.

Look for pools that have a stable and reliable mining infrastructure. Pools with high uptime and minimal downtime ensure that your mining operations are not interrupted, maximizing your earnings potential.

Consider the efficiency of the pool in terms of how quickly it can find blocks. Pools that can find blocks more frequently increase your chances of earning block rewards. Look for pools with a high block finding frequency to optimize your earnings.

Understand how the pool distributes rewards. Some pools may have a more favorable distribution method that benefits individual miners, while others may distribute rewards more evenly among all participants. Evaluate the reward distribution method to ensure it aligns with your earning goals.

Pool Fee Optimization Tips

  • Compare Pool Fees: When selecting a pool, compare the fees charged by different pools. Keep in mind that the lowest fee does not always equate to the highest profitability. Consider other factors such as the pool’s reputation, performance, and reliability in conjunction with the fees.
  • Consider Pool Features and Services: Evaluate the additional features and services offered by the pool. Some pools may provide advanced monitoring tools, detailed statistics, or customizable payout thresholds. These features can help you optimize your mining operations and maximize your earnings.
  • Regularly Review Pool Performance: Once you’ve selected a pool, regularly monitor its performance. Keep track of your earnings and assess whether the pool is meeting your expectations in terms of profitability. If you’re not satisfied with the results, consider switching to a different pool that better aligns with your goals.


Understanding pool fees and payment schemes is essential for miners seeking to maximize their earnings with Antminer S19 series miners. By carefully selecting a mining pool and optimizing fee management, miners can enhance their mining profitability. Continuous monitoring and evaluation of pool performance are vital to ensure optimal earnings and adapt to changing market conditions.

By providing a comprehensive understanding of pool fees and payment schemes and offering practical strategies for pool selection and fee optimization, this guide empowers miners to make informed decisions, optimize their mining earnings, and stay competitive in the ever-evolving world of Bitcoin mining with Antminer S19 series miners.


Do You Have to Pay to Join a Mining Pool?

Nearly all pools require fees, but some are structured to operate without them. For instance, SlushPool, the oldest mining pool still in use, levies a pool fee of 2% of your reward and a payout fee of 0.0001 Bitcoin for payouts of less than 0.01 Bitcoin.

What Are the Mining Pool Fees for Antpool?

Due to its current hash rate of more than 16 EH/s, Antpool is recognized as a reliable mining pool. They have a 2.5% fee and provide several payout alternatives, such as solo mining, PPS, and PPS+.

Why Are Bitcoin Mining Fees So High?

Since most Bitcoin blocks are only 1MB to 1.5MB in size, only a small number of transactions can be processed per block, resulting in lengthy wait times and occasionally higher fees.

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