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PPLNS (Pay Per Last N Shares)

PPLNS (Pay Per Last N Shares) is a payout model used by mining pools to distribute rewards to miners. In the PPLNS model, miners are paid based on the number of shares they contribute over a specific period, known as the "last N shares" window. This model emphasizes the contribution made during a defined period rather than just the shares submitted for a particular block.

PPLNS (Pay Per Last N Shares) Explained in Simple Terms

PPLNS is a mining pool payout system where miners are paid according to the number of shares they contribute over a period, typically the "last N shares." This means that instead of being paid for each share submitted in isolation (like in PPS), miners are rewarded based on their share contribution during a specific time frame.

The number "N" represents a predefined number of shares submitted by miners during a particular period, such as a specific number of shares before a block is solved. After the pool successfully mines a block, the reward is distributed to miners based on their contribution during the "last N shares" of mining activity. The PPLNS system makes payouts more dependent on the miner’s overall participation in the pool rather than individual block mining success.

The PPLNS model offers miners the opportunity to receive larger payouts over time but introduces more variability. Payouts can be higher when the pool mines several blocks in a short period but lower when the pool faces a block drought.

How PPLNS (Pay Per Last N Shares) Works

In PPLNS, the pool rewards miners based on their contribution over a specific number of shares ("last N shares"). Here’s how it works:

  1. Share Submission: Miners contribute shares to the pool. A "share" is a partial solution to the cryptographic puzzle the pool is trying to solve.

  2. Window of Shares (Last N Shares): The pool defines a window of "N" shares, where "N" could range from a few thousand to millions of shares, depending on the pool’s settings. This window is a rolling period over which the pool calculates miners' contributions.

  3. Block Mining: Once the pool successfully mines a block, the rewards (block reward and transaction fees) are calculated. Instead of paying miners for the current block’s shares, the pool looks at the last N shares contributed within that window to determine payouts.

  4. Reward Distribution: The pool distributes the rewards based on the number of shares submitted during the "last N shares." If a miner has contributed 10% of the last N shares, they will receive 10% of the reward.

PPLNS is designed to reward miners for their long-term participation in the pool. Since rewards depend on contributions over a period of time, the system can result in larger payouts, especially for miners who contribute consistently over time.

Example of PPLNS (Pay Per Last N Shares) 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

The pool has a window of 1,000,000 shares (the "last N shares" window).

  • Miner A contributed 100,000 shares during the window.

  • Miner B contributed 200,000 shares during the window.

  • Miner C contributed 700,000 shares during the window.

The total shares submitted by all miners are 1,000,000 shares.

To calculate the reward distribution:

  • Miner A contributed 100,000 / 1,000,000 shares, or 10% of the total shares.

  • Miner B contributed 200,000 / 1,000,000 shares, or 20% of the total shares.

  • Miner C contributed 700,000 / 1,000,000 shares, or 70% of the total shares.

The total reward of 6.5 BTC is distributed according to these percentages:

  • Miner A’s reward = 10% of 6.5 BTC = 0.65 BTC.

  • Miner B’s reward = 20% of 6.5 BTC = 1.3 BTC.

  • Miner C’s reward = 70% of 6.5 BTC = 4.55 BTC.

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Frequently Asked Questions

Still have questions about PPLNS (Pay Per Last N Shares)?
The key difference between PPLNS and other payout models like PPS (Pay Per Share) is that PPLNS rewards miners based on their contribution over a set period ("last N shares"). In contrast, PPS pays miners for each share submitted regardless of the pool's mining success. PPLNS rewards miners for consistent participation, which may result in larger payouts over time, but with more variability.
PPLNS can offer higher payouts than other models when the pool mines multiple blocks in a short period. However, the payouts can be less predictable, as miners are paid based on their contribution during a specific window rather than after each block is found. For miners who contribute consistently, the PPLNS model can result in larger rewards compared to models like PPS, especially if the pool has a strong block mining rate.
PPLNS offers the advantage of rewarding miners for long-term participation. The more shares you contribute over time, the larger your potential payout will be. This model can be more profitable for miners who are able to maintain consistent participation in the pool and contribute over an extended period, as it reduces the volatility of rewards.
The main disadvantage of PPLNS is its variability. Since miners are only paid after the pool successfully mines a block and based on their shares within a set period, payouts can be unpredictable. If the pool has a period with few block discoveries, miners may not receive payouts for longer periods. Additionally, miners who join the pool in the middle of a block-finding period may have less consistent payouts.
PPLNS may not be the best choice for new miners who are looking for predictable and steady earnings. Since payouts depend on block discoveries over a period of time, new miners may face longer waits for rewards compared to models like PPS. However, for more experienced miners or those with consistent mining setups, PPLNS can offer larger payouts in the long run.
To optimize earnings in a PPLNS pool, miners should aim for consistent participation. The more shares you contribute during the "last N shares" window, the larger your share of the block reward will be. Miners should ensure their mining rigs are running efficiently, maintain stable uptime, and contribute to the pool regularly to maximize their rewards.