How to choose your mining pool (criteria, PROP, PPLNS and PPS rewards, etc.)

How do mining pools differ from one another, and is there really one pool that is more profitable than the rest? In this 2022 video (in French), recorded before the Ethereum Merge, we review the criteria that matter when choosing a pool, explain the different payout methods (PROP, PPLNS, PPS and PPS+) and present our own strategy.

The criteria for choosing a pool

Network latency

Your miner constantly exchanges data with the pool's server: it is a client-server architecture. If that server is in the United States, Africa or Australia and you are mining from France, latency is likely to be poor. It is better to choose a pool with servers in Europe.

Fees

Most pools charge around 1 to 2% in fees, sometimes a little more: that is how they make a living. Some show 0%, such as the Hiveon pool built into HiveOS, which only handled ETH and ETC. One caveat, though: it is not entirely free, since HiveOS becomes paid beyond a certain number of rigs.

The range of coins offered

At the time, many miners mined nothing but ETH, even though the Merge was about to end it (it was announced for the end of September, with no precise date). A pool offering several coins lets you switch coins without switching pools. Some offered, for example, Ravencoin, Ergo, Beam, Firo or Flux on top of ETH and ETC.

The interface

The dashboard and the way statistics are presented affect how comfortable a pool is to use. For us, however, it is a secondary criterion.

Payout methods: PROP, PPLNS, PPS and PPS+

Your miner sends units of work, called shares, to the pool. When the pool finds a block, the reward is split between miners according to a system that varies from one pool to another.

PROP (proportional)

A round starts when a block is found and ends when the next block is found. Each miner is paid in proportion to the shares they contributed during that round. The problem is pool hopping: some clever miners join the pool at the start of a round, as soon as they detect that a block has just been mined, to take advantage of the system. In our view, this method is best avoided.

PPLNS (Pay Per Last N Shares)

The payout is still proportional to the shares contributed, but it is calculated on the last N shares: the round no longer depends on a block having just been found, which neutralises pool hopping. The luck factor remains with the miner: your earnings depend on how quickly the pool finds blocks.

PPS, PPS+ and FPPS

With PPS (Pay Per Share), every share is paid whether or not the pool finds a block: the pool takes on the luck risk. PPS+ also pays out the transaction fees of the mined blocks, and FPPS (Full Pay Per Share) follows the same principle. In return, fees are higher: in our example, 1.4% for PPS+, twice as much as for PPLNS.

Pool luck

Pools often display a luck indicator. At 100%, they find blocks at the expected average rate; above that, they are behind. At the time of recording, 2Miners was having "bad luck" at 137%.

Over a single day, luck can create big differences between two pools. Over time it evens out: in the long run, PPLNS and PPS deliver roughly the same profitability, within 2 or 3%. In a three-month comparison that we present, several pools were only about 1.5% behind the most profitable one.

Our strategy

• Fees: no more than 1%, the level around which most pools sit;
• Latency: a pool with servers in Europe;
• Choice of coins: with the Merge, a pool offering many coins;
• Payout method: avoid PROP; between PPLNS and PPS, the long-term difference is small;
• Interface: less important.

We also expected miners to switch coins more often after the Merge, using auto profit switching tools that automatically move to the most profitable coin.

What about today?

Since the Merge on 15 September 2022, Ethereum can no longer be mined and pools have changed what they offer. These criteria still apply, including for ASIC miners: fees, servers close to you, and payout method (PPLNS, PPS, PPS+ or FPPS).

To set up your pool in HiveOS, follow our HiveOS tutorial on the worker and flight sheet. Looking for a machine? Browse our ASIC miners, find all our video tutorials, or contact us for advice.