How to hop 5 out now! Ever wonder why pool hopping works? Wonder no longer. No math required.
I dont understand that at all to be honest. Also you are not even "pool hopping" in your example.
Reason: proportional payout rewards shorter rounds more, and shorter rounds are more likely.
That would imply that simply mining in a prop pool would have a higher expected value than PPS and that is obviously not true.
I've probably not explained as well as i thought. In
1. PPS vs full time mining I showed the non hopping situation. In
2. PPS vs the first share in a round I look at the situation of a miner submitting only 1 share each and every round. This is equivalent to submitting the first share in each round, or 'hopping off' after only one share. This is still pool hopping.
The actual full quote of the tl;dr is:
• Submitting a single share before the end of a round is worth much more on a proportional pool than on a PPS pool (on average, ~14 times more efficient than PPS at current D)
• Reason: proportional payout rewards shorter rounds more, and shorter rounds are more likely.
So what I mean was that the reason the first share submitted in each round is worth so much more than the other shares is that the proportional payout rewards shorter rounds more (one share round is worth 50 btc) and that because shorter rounds are more likely because of the nature of block solving, earlier shares are worth more than later ones - hence the reason for pool hopping.
This part that explains it is:
• 1/total shares is a hyperbolic function which hits a maximum of 50 coins for a round consisting of one share;
• The total number of shares to find a block averages to D but because of the nature of the process of block finding shorter rounds are more likely than longer ones eg. a round has a 62% chance of ending before D shares have been submitted to a pool.
Together these two facts mean that 1/(low total shares) is more likely than 1/(high total shares). Since the cumulative payout for a single share submitted before the end of each and every round will be the sum of:
1/total shares round 1 + 1/total shares round 2 + 1/ total shares round 3 + …
and since the total round shares tend to be smaller, over time the payout tends to be larger than the PPS value of the share which does not vary.
So, I guess I failed at trying to make it an explanation accessible to everyone - what could I have done differently in terms of what you know about pool hopping?
Thanks for the feedback