Coinbase Payouts
Payout Over Coinbase
When a pool is small and all miners can be paid directly from the coinbase, then directly paying all miners from coinbase works the best.
When building a share all mining nodes compute the payout distribution as per the PPLNS Accounting section and build a bitcoin coinbase to pay the miners directly from the coinbase transaction.
All mining nodes that receive a share validate this payout distribution as per the Validation section.
The diagram below shows three miners with various payout distribution being paid directly from the bitcoin coinbase based on the PPLNS accounting.
Miners A, B, and C have mined the six shares in the PPLNS window. Every share in this example has the same difficulty, so each miner’s portion is its count of shares: Miner A mined 3 of the 6, or 50%. PPLNS Share Accounting explains which shares the window holds and how difficulty weights them.
When a miner builds a share, the share’s bitcoin coinbase splits the 3.125 BTC reward in those proportions and pays each miner’s bitcoin address directly. If the share meets the bitcoin target, that coinbase becomes the bitcoin block’s coinbase and the payouts land on the bitcoin chain.
For simplicity, the diagram doesn’t show any uncle blocks or fee rewards in the coinbase outputs.
Coinbase Outputs
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The bitcoin address provided in the stratum username field is paid directly from the coinbase.
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The coinbase ouput also handle other details like an output for a donation address, if configured by miners.
Uncle Blocks
Uncle blocks are discounted and referring shares given a bonus as per Uncle Blocks and Rewards section.