PayPerLastNShares

PayPerLastNShares, often abbreviated as PPLNS, is a cryptocurrency mining pool payout method used to distribute block rewards among miners. In PPLNS, rewards are allocated based on the number of valid shares a miner contributed within a rolling window of the last N shares. N is a configurable parameter chosen by the pool.

How it works: The pool keeps track of the most recent N shares. When a new block is found, the block reward (including transaction fees) is distributed among those last N shares. Each share within the window has equal value, so a miner with s shares inside the window receives a portion of the block reward proportional to s (s/N) for that block. Shares that fall outside the current window are not eligible for that block’s payout. Because the window slides forward as new shares are submitted, a miner’s payout depends on how long their shares remain within the window.

Characteristics: PPLNS uses a moving window, delivering rewards only for shares that fall inside the last N worth of contributions. This method introduces variance for individual miners because payouts depend on luck and the timing of block discoveries. It rewards miners who stay with the pool longer, and it can be more resilient to certain pool-hopping strategies. There is no guaranteed payout for every block.

Benefits and trade-offs: Compared with fixed-per-share models, PPLNS can smooth pool revenue over time and reduce the pool’s exposure to short-term block-finding luck, but it increases short-term payout variance for individual miners. It also tends to favor long-term contributors who maintain continuous participation in the pool.

See also: Pay Per Share (PPS), mining pool payout methods.