PPLNS Payout Scheme

The PPLNS Payout Scheme, or Pay Per Last N Shares, is a popular method used by mining pools to distribute rewards to participants based on their contribution over a moving window of shares. Unlike other methods, it does not guarantee immediate payouts but rather rewards miners based on their work relative to the pool's success in finding blocks.

This scheme is designed to discourage pool hopping, a behavior where miners join a pool only when it is close to finding a block and leave immediately after. By focusing on the last N shares, the pool creates a more loyal community and aligns the incentives of the miners with the long-term success of the pool.

It is a more complex system for miners to understand but is often more profitable in the long run if the pool is consistent. It reflects the game-theoretic approach to managing mining pool participation and loyalty.