How do we kill FPPS as a valid business model?
Discussion
Just natural consequences of a Keynesian approach to mining. They are trying to quantify probabilities. That always leads to deficits and rug pulls.
If you want to be alluring to miners just be honest. A PPLNS system seems the most congruent with reality. Win a block, get paid according to your contribution. That's all.
So more PPLNS pools?
I just think they are the most likely to succeed as a payment model. What kills FPPS pools is economic reality.
What posturing can the FPPS'ers do in the meantime?
Considering the looming "institutional adoption" everyone is so jazzed about.
Use a PPLNS pool I suppose, or get rekt by "Theoretical Profit allocation"
I feel the same regardless. I Solo mine and PPLNS mine. I will never tell someone that they can't risk their assets for immediate gains.
As long as fiat exists and can be traded for bitcoin then a money printer can back the FPPS pool indefinitely.
I imagine as governments adopt mining they’ll require hashers in their jurisdiction to mine in their FPPS pool where they can control the block template. The allure of a fiat insurance policy will be tempting for all the big players.
Until the block subsidy becomes insignificant and fees become more relevant we’ll have large industrial miners for governments to court.
After that shift though the economics start to favor small, passive mining rigs like space heaters and such and for those people something like DATUM, which gives a better payout long term, will likely dominate.
its already dead its just a case of miners noticing how much money they're losing
How do we make them notice?
As more hashers migrate to pools like Ocean the FPPS model likely breaks down.
In order to smooth out fee payments the pool needs to retain a stack of bitcoin to pay out during the unlucky periods. As the pool starts to lose market share that stack quickly dwindles and the payout becomes unsustainable. At least in theory.
If a fiat money printer is backing the pool then hypothetically they could buy the coins on the open market and keep the scheme running indefinitely.
make a better one
Why? Sure, it isn't ideal for every miner but I think it has a place. Braiins FPPS with LN payouts is pretty nice for heater capture mining on a small (home but not a fun miner like a bitaxe) scale where you may have miners turning on and off but still want to capture some payout for your time they were on.
In that case it is the shortest and safest path to sats in self custody.
FPPS misaligns incentive by issuing debt on bitcoin. Most responses were right and it will die it's own death in time.