Can someone explain to me how does PPLNS mining pool profit split in lay terms?

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I tried reading up on how PPLNS works for mining pools, but I'm still very lost. Can someone explain how does pay per last N shares work? Explain it as if I was a kid.

Patoshi パトシ

Posted 2014-01-05T22:53:02.913

Reputation: 8 911

Answers

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As you mine, you earn shares. The more hashes you do, the more shares you earn. PPLNS means that every time the pool mines a block, shares of the reward are distributed to the miners that mined the most recent shares. Often, N is chosen as twice the difficulty. So if, on average, a block will be found every one billion shares, the block reward is divided to those who submitted the last two billion shares when the block was found.

David Schwartz

Posted 2014-01-05T22:53:02.913

Reputation: 46 931