Binance, after launching its Ethereum pool in November 2020, has already accumulated 4.9Th/s of capacity and 36,700 workers. Which allowed us to take the 12th place in terms of power among the largest Ethereum mining pools. Such a quick start was possible not only due to the well-known name, but also due to the lowest commission of 0.5% (1-2% for other large pools), due to daily payments regardless of the amount of extracted ether, and many other convenient functions for working with cryptocurrency, available to all users of Binance services.
From March 5, 2021, the Ethereum Binance pool is changing its reward system from FPPS to PPS +. What are the advantages and disadvantages of such a change, read on.
The main difference between the two payment methods for miners is a different calculation for paying commissions in a block, and the share of commissions in the Ethereum network can exceed a fixed fee of 2 ETH by several times. Those. this is a significant change worth considering. If for FPPS (Full Pay-per-Share) the main reward is in 2ETH and all commissions were calculated as PPS (Pay Per Share), i.e. the pool itself set the amount of payment for each shares, regardless of the number of blocks found. For PPS +, the situation is slightly different. If for the main reward the payment is also made according to the PPS method, then the commission is already distributed according to the PPLNS method (Pay Per Last N Shares). Those. in order to receive his full share of the commissions in the Ethereum network, the miner needs to send a certain amount of the share to the pool. Unfortunately, Binance Pool does not indicate how many shares need to be sent to receive a full payment using the PPLNS method. Typically this parameter ranges from 100 to 2000 Share. You can read more about all payment methods for pools here.
Now for miners who want to switch to the Binance pool, it should be borne in mind that at first they will receive a mining reward lower than they expected, but after a certain time, the payment will be the same as with the FPPS method. For comparison, FPPS paid for the first Share in full.
Obviously, for miners this is a slight deterioration in conditions, but none of the large Ethereum pools uses such a method as FPPS. Because with a large amount of commission fees in the Ethereum network, it is profitable for miners to temporarily switch from the PPS + and PPLNS pools to the FPPS pool at the time of the largest blocks in the network and receive a full reward from the first minutes of work, while the last shares are still being paid on the pool with PPS + and PPLNS sent before moving to another pool. Obviously, with FPPS, Binance Pool was losing part of the profit or even working in the red, given the lowest commission on the market at 0.5%.
It looks like the pool owners have decided to end this charity event and have adopted the most popular PPS + method to date, used on the largest pool, Sparkpool.
