Pool Fee is a charge retained by a mining pool for providing server infrastructure, distributing jobs, processing shares, calculating rewards, and processing payouts.

The fee is commonly expressed as a percentage of the amount that would otherwise be distributed to participants. For example, with a hypothetical 1% fee, part of the calculated reward goes to the pool operator, while the remaining amount is distributed according to the selected payout scheme.

What the Fee Pays For

  • server and network infrastructure;
  • distribution of mining jobs;
  • receipt and validation of shares;
  • statistics and monitoring;
  • participant balance accounting;
  • payout processing.

Pool Fees and Actual Income

The Pool Fee directly reduces the amount remaining for the miner after settlement with the pool. Therefore, when comparing pools, the fee should be considered together with the payout scheme and other conditions.

For example, a lower fee by itself does not guarantee a higher actual payout under every circumstance. The result also depends on how shares are valued, how rewards are distributed, how frequently blocks are found, and what payout conditions apply.

Pool Fee and Profitability

When calculating mining profitability, the pool fee should be treated as an expense that reduces mining income. With other conditions equal, a higher total fee leaves less net revenue for the miner.

The exact Pool Fee is determined by the pool operator and can differ between cryptocurrencies, payout schemes, and mining modes.