FPPS is an unregistered security.
Discussion
imo its more like an OTC derivative, akin to an interest rate swap.
the miners are floating and the pools are the fixed side of the legs. miners want certainty (swap floating payout for fixed), pools want profits and have balance sheet (like a bank)
if the analog applies, competition will come commoditize the currently dominant player
I mine for you and get shares in return. You guatentee a fixed value of those shares based on the work to be completed by others, unless I find the block myself.
Compared to PPLNS where you only get paid what you contribute and there's no float involved that depends on the work of others to return value.
