PPS vs PPS+ vs FPPS: Understanding Pool Payout Models

PPS vs PPS+ vs FPPS: Understanding Pool Payout Models

When you mine in a pool, you don't get paid every time a block is found — you get paid according to the pool's payout model. That model decides how stable your income is, how transaction fees are handled, and what fees the pool charges. The three most common models are PPS, PPS+, and FPPS. Here's how they differ and how to choose.

First, why payout models exist

Finding a Bitcoin block is random. A pool might find several blocks in an hour, then none for a day. Payout models are how pools smooth (or pass on) that randomness — this is called variance. Some models shield you from variance in exchange for a higher fee; others pass more reward to you with less predictability.

PPS (Pay Per Share)

With Pay Per Share, the pool pays a fixed amount for every unit of valid work you submit, whether or not the pool found a block that day.

• Very stable, predictable earnings
• The pool absorbs all variance risk — you're paid even during unlucky streaks
• Usually the highest fees, because the pool takes on that risk
• Does not include transaction fees — you're paid only on the block subsidy

PPS is ideal if you value smooth cash flow and don't want to worry about pool luck.

PPS+

PPS+ improves on PPS by adding transaction-fee rewards:

• Block subsidy is paid PPS-style (stable and predictable)
• Transaction fees are shared separately, based on the fees in blocks the pool actually finds
• A good balance of predictability and upside

PPS+ is one of the most popular models: you keep PPS stability while still benefiting when network fees are high.

FPPS (Full Pay Per Share)

FPPS also pays both the block subsidy and transaction fees, but calculates the fee portion using the network's average transaction fees over a period, rather than only the fees from blocks your pool happened to find.

• Both subsidy and fees are paid PPS-style
• Fee earnings are averaged across the network, smoothing fee variance too
• Highly predictable total income, including fees

In practice, FPPS often produces the steadiest all-in earnings, which is why many large hosting operations default to it.

Which should you choose?

• Want the simplest, most stable subsidy income? PPS.
• Want stability plus fair transaction-fee upside? PPS+.
• Want the most predictable total (subsidy and fees smoothed)? FPPS.

Also compare the pool fee on each model. A slightly higher FPPS fee can still net more than a low-fee PPS if fee rewards are significant. Over time the gap between PPS+ and FPPS is usually small; the biggest factor is choosing a reliable pool with good uptime and transparent reporting.

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