How does VARFEE work on MaxHash Ethereum pool?
Simply put our new variable fee system (VARFEE) means that the pool only takes a fee when its performing well and finding blocks quickly for our miners. When the pool is performing average or below then you don’t pay anything for our service. This means we have a mutual interest in miners getting more coins and higher earnings.
How exactly does this work?
We judge the performance and set the variable fee for the miners by using the “variance” percentage (sometimes called pool luck) over the last 16 blocks found by the pool. Variance percentage – lower is better! When running at less than 100% the pool is finding blocks faster than average and each miner benefits from increased earnings produced by this better block finding performance. The pool is expected to find a block within 100% variance but through careful optimization of the pool software we aim to reduce it below 100%. More information on variance be found HERE
Current average block variance percentage can be found on the POOL BLOCKS page of the website.
What does this mean for miners?
The simple answer to this question… you will get get more coins for your mining hash power. If the pool currently has 90% variance then each miner will get 10% more coins than expected during the period of “x” amount of blocks at 90% average variance. Miners have nothing to lose by switching to MaxHash! Worse case scenario is that we perform the same as every other pool and you will pay absolutely 0% pool fee and still have a chance every week of winning our unique JACKPOT reward system.
You do not have to change or modify anything as a miner, other than just pointing your rig at our servers. Everything else is handled by our very clever back-end.
How is VARFEE calculated?
Our unique VARFEE system is calculated by using this equation (100-variance*)/4 = VARFEE. *average variance for the last 16 blocks found by the pool.
This ensures that pool operators ONLY take a fee when the pool is performing well for miners and running below 100% variance.
VARFEE on the Ethereum pool is capped at a maximum of 1.5% and is automatically adjusted every 10 minutes throughout the day.
VARFEE (Variable Fee) TABLE
Example Variance %
|Example calculation||Example VARFEE %|
|90%||(100-90) / 4||1.5% (maximum cap)|
|97%||(100-97) / 4||0.75%|
|104%||VARFEE not active||0%|
But that seems more than other pools?
If the pool’s average variance consistently becomes better (lower) than other pools then miners will have higher earnings using MaxHash. We the pool operators would also see a share of these higher profits which we think is fair.
The maximum pool of 1.5% may sound slightly higher than other fixed fee pools but you must think about it differently, if the variance would be running at 90%
the pool would earn an extra 10% to distribute to miners. So of those extra, 8.5% goes to miners and 1.5% goes to pool operators to cover running costs. Also remember that this fee is not constant and our pool fee is completely dependent on block finding performance so we have a mutual interest in higher earnings for miners.