Definition
Mining pools charge fees to cover their operational costs and profit margin. The fee is a percentage deducted from miner payouts. Fee levels vary by pool and payout method: PPLNS pools often charge 0-2%, while FPPS pools (which absorb more risk) charge 2-4%.
While lower fees seem better, the total miner revenue depends on the combination of fee rate, payout method, pool luck, and whether transaction fees are included. A 2% FPPS pool may pay more than a 1% PPLNS pool in periods of high fee revenue.
In Simple Terms
The percentage a pool takes from rewards. Ranges from 0-4% depending on the pool and payout method.
The percentage of mining rewards that a pool operator takes as payment for running the pool infrastructure. Typically 0-4% depending on the payout method.