WoolyPooly mining pool has built its own original payment distribution system (WPDS) to improve rewards for our loyal miners. This article describes how the new system works.
Two goals motivated the payment distribution change:
1. To discourage pool hoppers.
2. To pay more to the miners who mine consistently without switching to other pools or coins.
PPLNS is a really good system, but it doesn’t address the second point, so we tweaked it.
WPDS is built upon the PPLNS system (we count shares by window/round) so first you have to earn participation.
For example, for mining ETH coin the PPLNS window is 2 (pool effort 200%). It’s easy to calculate the estimated time for earning full participation using the WoolyPooly mining calculator. Here’s how:
- Check the ETH pool hashrate and enter it into the calculator.
2. The calculator shows you the estimated time to get a block with 100% effort, so just multiply that by 2. If, for example, it shows 21 hours to get a block, full participation will be earned in 42 hours time.
Then, on standard PPLNS pools, if a miner goes offline the pool “holds” their share without their participation. From one perspective this is the correct behavior, but from another, these unclaimed shares are wasteful. We decided that it’s better to pay more to loyal pool miners who have continued to mine without disconnections (i.e. leaving the pool).
Due to WPDS, our miners who mine without disconnections earn 20–30% (!) more than on other pools.
Of course, we anticipate events like a loss of internet connection or rig maintenance downtime, so all miners will have 2 hours to get back online and mining without losing their participation status.