What is the best mining pool payout method?

For most miners, especially those using ASIC hosting services, FPPS (Full Pay Per Share) is the best payout method. It provides consistent, predictable income with no luck variance, and it captures transaction fee revenue — adding 10-20% more income compared to standard PPS. The slightly higher pool fee (2-3% vs 1-2% for PPLNS) is offset by the consistency and full fee capture.

What is the difference between PPS and FPPS?

PPS (Pay Per Share) pays miners a fixed amount per share based only on the block reward. FPPS (Full Pay Per Share) adds transaction fee revenue to the per-share payment, meaning miners earn a share of both the block reward and the transaction fees included in each block. FPPS typically pays 10-20% more than PPS because transaction fees are a meaningful component of total block revenue.

What is PPLNS mining?

PPLNS (Pay Per Last N Shares) distributes block rewards only when the pool actually finds a block, proportional to each miner contribution over the last N shares. This means payments vary — some days more, some days less, and potentially nothing if the pool is unlucky. Over long periods, PPLNS average returns are similar to PPS, but with lower fees (1-2%). It is best for miners who can tolerate income variance.

Which payout method has the lowest fees?

PPLNS typically has the lowest pool fees at 1-2%, because the miner bears the luck variance risk rather than the pool. PPS charges 2-4% and FPPS charges 2-3% because the pool absorbs all variance. However, the lowest fee does not always mean the highest net income — FPPS often produces more total revenue due to transaction fee capture, even after its higher fee.

PPS vs FPPS vs PPLNS: Mining Pool Payout Methods Explained

When you connect your ASIC miner — whether at home or through an ASIC hosting provider — to a mining pool, the pool uses a specific method to calculate and distribute rewards to its members. The three most common payout methods are PPS (Pay Per Share), FPPS (Full Pay Per Share), and PPLNS (Pay Per Last N Shares). Each method has different risk profiles, fee structures, and expected returns. Choosing the right one can meaningfully affect your mining revenue.

Understanding Shares and Mining Pools

Before comparing payout methods, it helps to understand how pools work. Solo mining — where a single miner attempts to find blocks independently — is impractical for most miners because the probability of finding a block is extremely low. Mining pools combine the hashrate of many miners to find blocks more frequently, then distribute the rewards proportionally based on each miner's contribution of "shares" — proof-of-work units that demonstrate computing effort.

The payout method determines how the pool converts those shares into BTC payments to miners. Learn more about mining pool fees and how they work.

PPS: Pay Per Share

How it works: The pool pays miners a fixed amount for every valid share submitted, regardless of whether the pool actually finds a block. The payment per share is calculated based on the current network difficulty and block reward (excluding transaction fees).

Risk profile: The pool absorbs all the variance risk. Even if the pool is unlucky and finds fewer blocks than expected, miners still receive consistent payments. The pool makes up the difference from its reserves.

Fees: Typically 2-4% — higher than PPLNS because the pool bears the luck variance risk.

Best for: Miners who prefer predictable, consistent income with no variance. Ideal for miners with hosted ASIC miners who want to forecast revenue reliably.

FPPS: Full Pay Per Share

How it works: FPPS is an evolution of PPS that includes transaction fee revenue in the per-share payment. Standard PPS only accounts for the block reward (currently 3.125 BTC). FPPS adds an estimate of the average transaction fees per block, giving miners a share of both the block reward and transaction fees.

Risk profile: Same as PPS — the pool absorbs all variance risk. Miners receive consistent payments.

Fees: Typically 2-3%. Slightly lower than PPS at some pools because the higher total revenue base allows the pool to maintain margins at a lower percentage.

Revenue advantage: Transaction fees currently add 10-25% on top of the block reward during normal periods, and can spike much higher during periods of high network activity. By capturing this additional revenue, FPPS miners typically earn 10-20% more than PPS miners over time.

Best for: Most miners, including those using ASIC hosting services. FPPS provides the consistency of PPS with the additional revenue of transaction fees. Major pools like F2Pool, AntPool, and ViaBTC offer FPPS.

PPLNS: Pay Per Last N Shares

How it works: The pool only pays miners when it finds a block. When a block is found, the reward is distributed among miners based on the shares they submitted in the last N shares window (where N is a configurable number). If the pool doesn't find a block during your mining session, you receive nothing for that period.

Risk profile: The miner bears the variance risk. During lucky periods (pool finds blocks faster than expected), PPLNS pays more than PPS. During unlucky periods, it pays less — or nothing if no blocks are found.

Fees: Typically 1-2% — lower than PPS/FPPS because the pool does not bear variance risk.

Revenue expectation: Over long periods (months), PPLNS average revenue converges with PPS. However, day-to-day and week-to-week payments can vary significantly. Some days you earn well above average; other days you earn below. This variance decreases as the pool's total hashrate increases.

Best for: Large-scale miners who can tolerate variance, have multiple miners to diversify across pools, and want the lowest possible pool fees. Also suitable for miners who plan to mine for extended periods (the longer you mine, the more variance averages out).

Side-by-Side Comparison

Income consistency: FPPS = PPS (high) > PPLNS (variable)
Expected long-term revenue: FPPS > PPLNS > PPS (FPPS wins because it captures transaction fees at consistent rates)
Pool fees: PPLNS (1-2%) < FPPS (2-3%) < PPS (2-4%)
Risk bearer: Pool (PPS/FPPS) vs Miner (PPLNS)
Transaction fee capture: FPPS (yes, included) vs PPS (no) vs PPLNS (yes, when block found)

Which Method Is Best for Hosted Miners?

For miners using ASIC hosting services, we generally recommend FPPS as the optimal payout method. Here is why:

Predictable revenue: When you have fixed monthly hosting costs, predictable mining income makes financial planning easier. FPPS eliminates the day-to-day revenue swings of PPLNS.
Transaction fee capture: FPPS includes transaction fees, which add 10-20% to your revenue compared to basic PPS. As block rewards decrease through future halvings, this component grows in importance.
No luck risk: You don't need to worry about pool luck affecting your income. Every valid share earns its calculated value.

The slightly higher fee (2-3% vs 1-2% for PPLNS) is worth paying for the consistency and full revenue capture. For most hosted miners, the additional transaction fee revenue captured by FPPS more than offsets the higher pool fee.

Ready to start mining with a professional hosting setup? Request a quote from ASICHosting.org and pair competitive hosting rates with the FPPS payout method for optimal returns.