Minimum Payout
The smallest BTC balance a pool will send to a miner's wallet. Lower thresholds mean more frequent payouts but higher transaction fees.
What is Minimum Payout?
Minimum payout (also called payout threshold) is the smallest amount of BTC a mining pool will send to a miner's wallet in a single transaction. Miners accumulate earnings in their pool account until the balance reaches this threshold, at which point the pool automatically sends the payment.
How Minimum Payout Works
- As you mine, your pool balance grows with each share or block found
- The pool checks balances on a regular schedule (daily, or more frequently)
- When your balance exceeds the minimum payout threshold, the pool initiates a withdrawal
- The BTC is sent to the wallet address you configured in your pool account
Common minimum payout thresholds range from 0.001 BTC to 0.01 BTC, depending on the pool. Some pools allow miners to customize their threshold within a defined range.
The Tradeoff: Frequency vs Fees
Lower minimum payouts mean you receive BTC more frequently, but each payout incurs a Bitcoin network transaction fee. If the payout is small, the transaction fee can represent a significant percentage of the amount received.
| Threshold | Payout Frequency (example) | Fee Impact |
|---|---|---|
| 0.001 BTC | Every few days | Higher relative fee |
| 0.005 BTC | Weekly | Moderate |
| 0.01 BTC | Every 1-2 weeks | Lower relative fee |
| 0.1 BTC | Monthly or longer | Minimal fee impact |
Pool Differences
Different pools handle payout fees differently:
- Some pools absorb the transaction fee, paying it from their own revenue
- Others deduct it from the miner's payout
- Some offer Lightning Network payouts with near-zero fees for small amounts
When comparing pools, consider the minimum payout alongside the fee structure. A pool with a higher mining fee but lower minimum payout and absorbed transaction fees might be more cost-effective for smaller miners than a low-fee pool that charges transaction fees on frequent small payouts.
Choosing Your Threshold
For most miners, the default minimum payout is appropriate. If you prefer more control over your BTC (self-custody sooner), opt for a lower threshold and accept the fee tradeoff. If you want to minimize fees, choose a higher threshold and let your balance accumulate longer between payouts.