bitcoin-mining-pool-architectures

v2026.09.24

Mining pool reward schemes: PPS, FPPS, PPLNS, PPS+, Score, prop. Block generation queue, share variance, payout cycles. Solo mining vs pooled. USE WHEN: comparing pools, designing reward systems, understanding miner economics.

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Pool Architectures & Reward Schemes

Pools allow many miners to collectively find blocks. Differences are in how rewards are distributed.

Reward schemes

PPS (Pay-Per-Share)

Miner gets fixed payment per accepted share. Pool absorbs all variance:

  • Pro: predictable income for miners.
  • Con: pool needs cash reserve to cover bad-luck periods.

Fee: typically 4-5% to compensate pool variance risk.

FPPS (Full Pay-Per-Share)

PPS but miner also receives proportional share of transaction fees beyond just the subsidy.

Most popular scheme as of 2024-2025.

Fee: 2-3%.

PPLNS (Pay-Per-Last-N-Shares)

Reward = block_reward × (your_shares_in_last_N / total_shares_in_last_N).

  • Pool doesn't pay until block found.
  • Miners experience variance directly.
  • Discourages pool-hopping (you must mine consistently to be in the N window).

Fee: 1-2% (lower because pool doesn't bear variance risk).

PPS+

PPS for subsidy + PPLNS for fees. Hybrid.

Score (deprecated / niche)

Older scheme that decayed share scores over time. Largely replaced by PPLNS.

Proportional

Reward = your_shares / total_shares_this_round × block_reward.

Vulnerable to pool-hopping; rarely used.

Pool block-finding

Pool's core function:

  1. Construct block templates.
  2. Distribute work to miners (Stratum V1 or V2).
  3. Verify share submissions.
  4. When a share is also a block (≤ network target), submit to network.
  5. Distribute rewards per scheme.

Variance considerations

A solo miner finding a block:

  • Expected time = network_time × (network_hashrate / your_hashrate).
  • For 100 TH/s on a ~980 EH/s network (September 2026): ~68,000 days ≈ 186 years.

Pooled:

  • Get reward proportional to your hashrate share, daily/hourly.
  • Variance reduced.

Pool centralization risks

  • 51% attack: top pools by hashrate can theoretically reorg.
  • Censorship: pools have OFAC-compliance pressure.
  • Selfish mining: pool with > 25% hashrate could selfish-mine.

Mitigations:

  • Stratum V2 (miners choose own tx).
  • Decentralized pools (P2Pool, OCEAN DATUM).
  • Solo mining (CKPool, Public-Pool).

Major pools (as of September 2026)

Shares below are blocks found over the trailing 3 months per mempool.space, sampled 2026-09-15, on a network running ~980 EH/s.

  • Foundry USA — ~25%; largest by hashrate.
  • AntPool (Bitmain) — ~19%; second.
  • F2Pool — ~15%; historical leader.
  • SpiderPool — ~9%; fourth-largest.
  • ViaBTC — ~9%.
  • MARA Pool — ~5%.
  • SECPOOL — ~4%.
  • Luxor — ~3%.
  • OCEAN — ~3%; ~21.2 EH/s (ocean.xyz, 2026-09-15). Non-custodial TIDES payouts; miners building their own templates with DATUM get a 50% pool-fee discount.
  • Binance Pool — ~2%.
  • Braiins Pool (formerly Slush Pool) — ~2%; SV2-capable.
  • DMND (DEMAND) — SV2-native pool; mined block 955,318 (2026-06-25), which DMND states is the first block built via Stratum V2 job declaration (dmnd.work, 2026). Negligible network share so far — one block in the trailing year as of 2026-09-15.

See also

Discovery
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Version

v2026.09.24

Published

Sep 24, 2026

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License

MIT

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skills/bitcoin/mining/pool-architectures

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