Pay Per Last N Shares (PPLNS)

What is PPLNS?

Pay Per Last N Shares (PPLNS) is a mining pool payout method where miners are paid based on the shares they contributed within a recent window when a block is found. Unlike FPPS, payments only occur when the pool actually discovers a block.

How PPLNS Works

1. Miners submit shares continuously as proof of their mining work
2. The pool maintains a sliding window of the last N shares (the "N" in PPLNS)
3. When the pool finds a block, the reward is distributed among miners whose shares fall within that window
4. Your payout is proportional to your shares in the window relative to the total

The size of N varies by pool but is typically set large enough to cover one or more expected block-finding intervals. A larger N smooths variance but means it takes longer for new miners to reach full earning potential when they first join.

Variance in PPLNS

PPLNS introduces variance because payouts depend on when blocks are found. During lucky streaks (blocks found faster than expected), miners earn more. During unlucky periods, earnings drop. Over long periods, PPLNS and FPPS converge to similar total earnings, but the day-to-day experience differs significantly.

Why Choose PPLNS

PPLNS pools typically charge lower fees (1-2%) compared to FPPS (3-4%) because the pool does not bear the risk of unlucky rounds. This makes PPLNS attractive for miners with a longer time horizon who can tolerate short-term variance in exchange for potentially higher long-term returns.

PPLNS also discourages pool hopping -- miners who switch pools frequently earn less because their shares may not be in the window when a block is found. This rewards loyal, consistent miners.

Popular PPLNS Pools

Pools like Braiins Pool (formerly Slush Pool) and OCEAN use PPLNS or PPLNS-like payout schemes. These pools appeal to miners who value lower fees and are comfortable with earnings that fluctuate around the expected average.