FPPS
FPPS (Full Pay Per Share) is an enhanced pool payout method that pays miners a fixed rate per share, covering both the block subsidy and an estimated portion of transaction fees. It is the most popular payout scheme among large mining pools.
Understanding FPPS
Section titled “Understanding FPPS”Standard PPS only pays miners based on the block subsidy, ignoring transaction fees. As Bitcoin matures and the block subsidy decreases through halvings, transaction fees make up an increasingly significant portion of the total block reward. FPPS was developed to give miners their fair share of these fees as well.
Think of standard PPS as a waiter who gets a fixed hourly wage but no tips. FPPS is like getting the fixed wage plus a guaranteed share of the average tips the restaurant earns. Even if your specific table does not tip well (the pool has bad luck), you still receive the estimated average tip amount.
The pool calculates the FPPS rate by looking at recent average transaction fees per block and adding that to the standard PPS rate. The exact calculation methods vary between pools, but the general formula is: fpps_share_value = (block_subsidy + avg_tx_fees) x (share_difficulty / network_difficulty).
Practical Example
Section titled “Practical Example”Suppose the block subsidy is 3.125 BTC and the average transaction fees per block are 0.5 BTC, making the average total block reward 3.625 BTC. Under FPPS, each share’s value is calculated using 3.625 BTC instead of just 3.125 BTC. This means approximately 14% more revenue per share compared to standard PPS in this scenario.
For a mining farm running 100 machines at 200 TH/s each, the difference between PPS and FPPS can amount to thousands of dollars per month, making FPPS the preferred choice for most professional mining operations.