[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-term-en-prop":3,"glossary-related-en-prop":41},{"term":4},{"id":5,"locale":6,"slug":7,"term":8,"h1":8,"shortDefinition":9,"simpleExplanationHtml":10,"howItWorksHtml":11,"exampleHtml":12,"contentHtml":13,"aliases":14,"abbreviations":15,"algorithms":16,"faq":17,"seoTitle":36,"seoDescription":37,"status":38,"publishedAt":39,"updatedAt":40},"725fd2f5-d52c-4057-ab50-244a5b2bfd42","en","prop","PROP (Proportional Reward)","PROP (Proportional Reward) is a mining pool payout model where miners are rewarded based on the proportion of shares they contribute to the pool relative to the total shares submitted by all miners. In the PROP system, miners receive a percentage of the total reward (block reward + transaction fees) in direct proportion to their share of the pool’s total work. ","\u003Cp>PROP (Proportional Reward) is a payout model used by mining pools to distribute rewards to miners based on how many shares they contribute to the pool relative to the total number of shares submitted by all miners. A \"share\" in this context is a partial solution to the mining puzzle.\u003C\u002Fp>\u003Cp>When the pool successfully mines a block, the rewards (block reward and transaction fees) are divided among miners based on the proportion of shares they contributed to solving the block. For example, if you contributed 10% of the total shares in the pool, you would receive 10% of the block reward.\u003C\u002Fp>\u003Cp>The PROP system is simple and transparent, as miners are paid directly in proportion to their contribution. However, since payouts are only made when the pool successfully mines a block, the system can result in more variability in earnings compared to models like PPS, which offer guaranteed payouts for each share submitted.\u003C\u002Fp>","\u003Cp>In the PROP model, miners are rewarded based on their share of the total mining effort. Here's how it works:\u003C\u002Fp>\u003Col>\u003Cli>\u003Cp>\u003Cstrong>Shares Submitted\u003C\u002Fstrong>: Each miner in the pool submits shares by solving partial mining puzzles (nonces) assigned by the pool.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Pool Mines a Block\u003C\u002Fstrong>: Once the pool successfully mines a block, the total reward (block reward and transaction fees) is calculated.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Reward Distribution\u003C\u002Fstrong>: The pool’s reward is distributed among miners based on the proportion of shares they submitted during the mining process. If a miner submitted 10% of the total shares, they will receive 10% of the block reward.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>No Guarantees\u003C\u002Fstrong>: Unlike PPS or FPPS models, miners in a PROP pool are only paid when the pool successfully mines a block. If the pool does not find a block, miners do not receive any payouts.\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Fol>\u003Cp>Since miners are paid based on their contribution to the pool’s mining efforts, the PROP system rewards long-term and consistent participation. However, payouts may be inconsistent, especially during periods when the pool does not find blocks as frequently.\u003C\u002Fp>","\u003Cp>Let’s consider a mining pool that successfully mines a block with the following reward:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>\u003Cstrong>Block reward\u003C\u002Fstrong>: 6.25 BTC\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Transaction fees\u003C\u002Fstrong>: 0.25 BTC\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Total reward\u003C\u002Fstrong>: 6.5 BTC\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>The pool has 1,000,000 shares submitted by all miners, and the distribution of shares is as follows:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>\u003Cstrong>Miner A\u003C\u002Fstrong> contributed 100,000 shares.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Miner B\u003C\u002Fstrong> contributed 200,000 shares.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Miner C\u003C\u002Fstrong> contributed 700,000 shares.\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>The total number of shares submitted by all miners is 1,000,000 shares.\u003C\u002Fp>\u003Cp>To calculate the reward distribution:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>\u003Cstrong>Miner A’s reward\u003C\u002Fstrong> = 100,000 \u002F 1,000,000 shares = 10% of the total shares → 10% of 6.5 BTC = 0.65 BTC.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Miner B’s reward\u003C\u002Fstrong> = 200,000 \u002F 1,000,000 shares = 20% of the total shares → 20% of 6.5 BTC = 1.3 BTC.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>\u003Cstrong>Miner C’s reward\u003C\u002Fstrong> = 700,000 \u002F 1,000,000 shares = 70% of the total shares → 70% of 6.5 BTC = 4.55 BTC.\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>\u003C\u002Fp>","\u003Cp>In this example, the pool distributes the 6.5 BTC reward proportionally based on the number of shares each miner contributed. This is how the PROP payout model ensures fairness in the distribution of rewards.\u003C\u002Fp>",[],[],[],[18,21,24,27,30,33],{"answer":19,"question":20},"In a PROP pool, rewards are calculated based on the proportion of shares each miner contributes to the pool's total shares. If a miner contributes 10% of the total shares, they will receive 10% of the block reward. The system is simple and fair, but payouts are only made when the pool successfully mines a block.","How is the reward calculated in a PROP pool?",{"answer":22,"question":23},"The main advantage of PROP is that it is straightforward and transparent. Miners are paid exactly in proportion to their share contributions, making the system easy to understand. Additionally, there are no complex payout systems or guarantees, which can simplify the mining pool's operations.","What are the advantages of the PROP payout model?",{"answer":25,"question":26},"The disadvantage of PROP is that payouts are not guaranteed and depend on the pool successfully mining a block. This means that miners may face long periods without payouts if the pool is unable to mine blocks regularly. Additionally, the variability in payouts can be higher compared to models like PPS, which offer guaranteed payouts for each share.","What are the disadvantages of the PROP payout model?",{"answer":28,"question":29},"PROP may not be the best choice for new miners who prefer predictable and consistent payouts. Since payouts are only made when the pool mines a block, new miners may face longer waits for payouts, especially if the pool’s block mining rate is slow. More established miners may prefer PROP for its simplicity and fair distribution of rewards.","Is PROP a good choice for new miners?",{"answer":31,"question":32},"In comparison to PPS (Pay Per Share), PROP offers more variability in payouts. PPS guarantees a fixed payout for each share submitted, regardless of block mining success, while PROP only pays miners when the pool successfully mines a block. Although PROP offers fairer reward distribution, the absence of guaranteed payouts means it can be less predictable for miners, especially during block droughts.","How does PROP compare to other payout models like PPS?",{"answer":34,"question":35},"Yes, miners can join or switch to a pool that uses the PROP payout model at any time. However, miners should consider factors like pool fees, mining hardware, and overall performance when choosing a pool. PROP may be a good option for miners who want a simple, proportional payout system and are willing to accept the variability in payouts.","Can I switch to a pool that uses PROP?","PROP (Proportional Reward): Definition, How It Works and Benefits","What is PROP (Proportional Reward) in Bitcoin mining? Learn how the PROP payout model distributes rewards based on share contributions, its benefits, and how it compares to other models.","published","2026-05-13T15:28:26.068Z","2026-05-13T15:28:22.841Z",{"items":42},[43,49,55,61,67],{"id":44,"slug":45,"term":46,"shortDefinition":47,"firstLetter":48},"4c62c388-7f75-4af1-ba6f-4ca8f4f5d715","energy-efficiency","Energy Efficiency","Energy efficiency in Bitcoin mining refers to the ability to perform mining operations using the least amount of electricity possible, while maximizing the output of mining rigs. In Bitcoin mining, the main energy-consuming component is the mining hardware, such as ASIC miners or GPUs. Energy efficiency is crucial for miners to maintain profitability, as electricity is one of the largest operational expenses.","E",{"id":50,"slug":51,"term":52,"shortDefinition":53,"firstLetter":54},"61ac484a-b174-419b-b935-57c3440934ce","renewable-energy-in-mining","Renewable Energy in Mining","Renewable energy in Bitcoin mining refers to the use of sustainable energy sources, such as solar, wind, hydroelectric, or geothermal power, to run mining rigs and operations. By utilizing renewable energy, miners can reduce the environmental impact of their mining activities, lower electricity costs, and improve the long-term sustainability of their operations. The growing adoption of renewable energy is a key step toward making Bitcoin mining more eco-friendly.","R",{"id":56,"slug":57,"term":58,"shortDefinition":59,"firstLetter":60},"472268cf-ad8b-4f8e-bfd9-765eeab0c981","hash","Hash","A hash is a fixed-length string of characters generated by applying a cryptographic function to input data. Hashes uniquely represent transactions. Even a small change in the input produces a completely different hash, making it essential for security in Bitcoin mining and block validation.","H",{"id":62,"slug":63,"term":64,"shortDefinition":65,"firstLetter":66},"c1985bd1-d4ae-4b62-b765-f5d0d3a0537f","antminer","Antminer","Antminer is a brand of ASIC (Application Specific Integrated Circuit) mining hardware developed by Bitmain. Antminer devices are specifically designed for cryptocurrency mining, particularly Bitcoin, and are known for their high efficiency, power, and performance. Learn how ASIC devices are used.","A",{"id":68,"slug":69,"term":70,"shortDefinition":71,"firstLetter":72},"9040bb75-41e2-4e69-9a0b-5a83ff81b06b","blockchain","Blockchain","Blockchain is a decentralized digital ledger that records transactions across a distributed network of computers. It stores data in blocks linked together in chronological order and secured using cryptography. Once recorded, information on a blockchain cannot be easily altered, making it a transparent and tamper-resistant system widely used in Bitcoin and other cryptocurrencies.","B"]