Mining pool fees: how PPS, PPLNS, and FPPS pay
Typical mining pool fees are a share of block rewards, not a flat rate. A pool can pay per share or only when it finds a block, and minimums apply.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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- The IRS taxes mining rewards as income when you receive them.
- An FPPS pool usually costs more than a PPLNS pool.
- A lower pool charge can leave you with less.
The payout method decides when you are paid and how far bad luck moves your income.
How do PPS, PPLNS, and FPPS compare?
PPS pays a set amount for every valid share, whether or not the pool finds a block. PPLNS pays nothing until a block arrives, then splits that reward among recent shares. FPPS adds transaction charges to PPS and usually costs more than PPLNS.
What do typical pools charge?
A pool fee is a percentage of each block reward that the pool keeps. An FPPS pool usually sets a higher percentage than a PPLNS pool, because it carries more payout risk.
What are payout minimums and withdrawal charges?
Every pool sets its own minimum payout, and those minimums differ by pool and coin. A PPS pool often pays on a schedule once your balance clears the minimum, while a PPLNS pool waits for a block.
How are mining rewards taxed?
The IRS treats crypto as property, so mining rewards count as ordinary income at their value on the day you receive them. Pool charges reduce taxable income for a mining business, and hobby miners usually cannot deduct them.
How do you compare effective earnings?
Compare what reaches your wallet after the pool charge, the minimum, and the withdrawal charge. A PPS pool pays smaller amounts more often, while a PPLNS pool pays larger amounts less often.
- Note the pool charge and method.
- Find the payout minimum and charge.
- Estimate how often blocks arrive.
Frequently asked questions
Many pools allow it, and the new method applies to shares you submit afterward. Some set a waiting period.
It varies. Some pay on a schedule, and some pay when your balance clears the minimum.
You receive nothing for that stretch, because PPLNS pays from block rewards. Shares count only if they fall in the pool's recent window.
