Definition
PPS pays miners a fixed amount for each share submitted, calculated from the theoretical value of that share based on the current block subsidy and difficulty. Unlike FPPS, PPS does not include transaction fees in the payout.
PPS provides highly predictable income for miners since payments are made per share regardless of block finds. However, miners miss out on transaction fee revenue, which can be significant during periods of high network activity. PPS has largely been superseded by FPPS at major pools.
In Simple Terms
A pool payout paying a fixed rate per share based on the block subsidy only, not transaction fees.
PPS is a term used in Bitcoin mining related to economics & profitability.
Also known as: Pay Per Share.
PPS pays miners a fixed amount for each share submitted, calculated from the theoretical value of that share based on the current block subsidy and difficulty. Unlike FPPS, PPS does not include transaction fees in the payout.
PPS provides highly predictable income for miners since payments are made per share regardless of block finds. However, miners miss out on transaction fee revenue, which can be significant during periods of high network activity. PPS has largely been superseded by FPPS at major pools.
Understanding pps is important for Bitcoin miners because it directly impacts mining operations, hardware selection, or profitability calculations. Whether you are a home miner running a Bitaxe or operating a larger ASIC setup, this concept helps inform better mining decisions.
Related terms: FPPS, PPLNS, Mining Pool, Share.