I've been thinking about a question recently: many novice miners don't know how to choose a payment model after joining a mining pool. In fact, this choice directly affects your income stability and is worth studying carefully.

Currently, most PoW project miners mine through mining pools because the probability of finding a block solo is too low. The pool aggregates the computing power of miners worldwide, allowing for more frequent block discoveries. But here’s the problem: some miners have 10 machines, others only 1. How can rewards be fairly distributed when contributions are unequal?

This brings us to the issue of payment models. Since the first mining pool appeared in 2010, there have been over 10 different payout methods. Today, the mainstream can be roughly divided into five categories: PPS, PPS+, PPLNS, FPPS, and SOLO. Among these, PPS+ and PPLNS are the most commonly used.

First, PPS+. This is an improved version introduced by a major mining pool in 2016. Its core logic is to split rewards into two parts: block rewards are distributed via PPS, providing a stable, predictable payout, while transaction fees are distributed via PPLNS. Simply put, each share you submit earns a steady base reward, and the transaction fees earned when the pool finds a block are distributed additionally according to PPLNS rules. The advantage of this approach is that income is more stable and predictable, with less volatility.

PPLNS, on the other hand, works differently. It calculates rewards based on the most recent N shares. Your earnings are only confirmed when the pool actually finds a block. The pool tracks how many shares you contributed within the last N shares, then distributes the entire reward (including coinbase and transaction fees) proportionally. The benefit is that if the pool is lucky and finds blocks frequently, your earnings can be quite high. Conversely, if the pool is unlucky for a period, your earnings will be lower.

For example, suppose the pool has received 200,000 shares when it finds a block, and you contributed 200 shares. Your reward would be your share proportion times the total reward. This ratio can be high or low, entirely depending on the pool’s luck.

So, how to choose? It’s simple: it depends on your risk preference. If you care more about income stability and don’t want to watch market fluctuations daily, PPS+ is more suitable—like receiving a fixed salary. If you can accept income fluctuations and even hope to make big money through luck, PPLNS is more attractive. In this mode, lucky miners might earn more in a month than others.

Many mainstream pools now support both models. Before joining a pool, you should set your payout method accordingly. Different coins may have different support levels across pools. For example, some pools have recently started supporting a hybrid mode with PPLNS plus transaction fee sharing on certain coins, giving miners more options.

In summary, conservative miners should choose PPS+, while aggressive miners might prefer PPLNS. Just decide based on your actual situation and the specific rules of the pool.