Pay per Share Model

The Pay Per Share model is a mining pool payout scheme that offers miners a guaranteed, fixed reward for every valid share of work they contribute, regardless of whether the pool finds a block. This approach effectively shifts the variance risk from the individual miner to the pool operator.

Because the pool operator takes on the risk of long dry spells, they often charge higher fees to compensate for the potential volatility. This model is highly attractive to miners who prefer a stable and predictable income stream over the higher variance associated with other methods.

It simplifies the accounting for miners but requires the pool operator to maintain a significant reserve of funds to cover payouts during periods when the pool is not finding blocks. It is a standard feature in many professional mining pools that prioritize user experience and stability.

This model is a direct response to the inherent volatility of the mining process.