Sign upTrial Mining
Trial Mining
← Back to Glossary

FPPS (Full Pay Per Share)

FPPS (Full Pay Per Share) is an enhanced payout model used by mining pools to distribute rewards to miners. In FPPS, miners are paid a fixed amount for each share they contribute to the pool, just like the standard PPS model. FPPS goes a step further by including both the block reward and the transaction fees in the payout, ensuring that miners receive 100% of the reward from both sources.

FPPS (Full Pay Per Share) Explained in Simple Terms

FPPS (Full Pay Per Share) is a variation of the PPS (Pay Per Share) payout system. Like PPS, miners in a pool are paid for every share they submit based on the pool’s difficulty level and block reward. However, unlike the standard PPS model, FPPS includes not only the block reward (the fixed amount of Bitcoin created for each mined block) but also the transaction fees that miners collect from transactions included in that block.

In essence, FPPS ensures that miners receive 100% of both the block reward and transaction fees, distributed proportionally based on their contribution to the pool. This makes FPPS a more favorable option for miners who want a predictable income stream, including rewards from both the mined block and the associated transaction fees.

How FPPS (Full Pay Per Share) Works

The FPPS model works similarly to the standard PPS payout model, with the key difference being that it includes transaction fees in addition to the block reward. Here’s how it works:

  1. Shares Submitted: Miners contribute shares to the pool by solving partial mining puzzles, which are then submitted to the pool.

  2. Block Mined: When the pool successfully mines a block, the pool receives both the block reward (currently 6.25 BTC) and transaction fees (fees collected from Bitcoin transactions included in the block).

  3. Reward Distribution: The pool operator distributes the total rewards (block reward + transaction fees) to miners according to their contribution, with the amount each miner receives being proportional to the shares they submitted.

  4. Full Payment: In FPPS, miners receive a fixed payout for each share, which includes both the block reward and the transaction fees, ensuring they are paid the full reward from both sources.

The FPPS model is beneficial because it provides a more predictable and stable income for miners, as they are guaranteed a payout based on every share they contribute, and the payout includes all of the rewards, not just the block reward.

Example of FPPS (Full Pay Per Share) in Practice

Let’s consider a mining pool that successfully mines a block, and the total reward consists of the following:

  • Block reward: 6.25 BTC

  • Transaction fees: 0.25 BTC

  • Total reward: 6.5 BTC

  • Miner A contributes 100,000 shares.

  • Miner B contributes 50,000 shares.

  • Total shares submitted: 150,000 shares.

The pool payout per share is calculated as:

  • Payout per share = 6.5 BTC / 150,000 shares = 0.0000433 BTC per share.

  • Miner A’s payout = 100,000 shares * 0.0000433 BTC = 4.33 BTC.

  • Miner B’s payout = 50,000 shares * 0.0000433 BTC = 2.165 BTC.

Related Mining Terms

Frequently Asked Questions

Still have questions about FPPS (Full Pay Per Share)?
The main difference between FPPS (Full Pay Per Share) and regular PPS (Pay Per Share) is that FPPS includes not only the block reward but also the transaction fees collected during the mining process. In PPS, miners only receive the block reward, whereas FPPS ensures miners are paid for the transaction fees as well, offering more consistent payouts.
FPPS benefits miners by providing them with a more predictable and stable income, as they receive both the block reward and the transaction fees for every share they contribute. This increases the overall payout per share, making it a more attractive option for miners who want to receive the full reward from mining activities.
FPPS can be more profitable for miners compared to other payout models, especially in cases where transaction fees are significant. Since miners are paid for both the block reward and transaction fees, FPPS ensures they receive a larger portion of the rewards. However, the profitability also depends on the pool’s fee structure and the overall network difficulty.
In FPPS, transaction fees collected from Bitcoin transactions included in the mined block are distributed along with the block reward. This ensures that miners receive the full compensation for their contribution, including the fees miners would typically miss in other payout models like PPS.
One downside of FPPS is that the pool operator typically charges a higher fee than other payout models like PPS or PPLNS, as they need to cover the cost of distributing both the block reward and transaction fees. Miners should compare pool fees before joining a pool to ensure that the added benefits of FPPS outweigh the costs.
Yes, miners can switch to a pool that uses the FPPS model at any time. However, miners should consider factors such as pool fees, reliability, and payout history before switching pools. FPPS is often chosen for its stability and predictability in payouts, especially for miners who value regular, consistent earnings.