{"ID":2841335,"CreatedAt":"2026-06-01T04:54:23.091178241Z","UpdatedAt":"2026-06-01T04:54:23.091178241Z","DeletedAt":null,"paper_url":"https://arxiv.org/abs/2511.13777","arxiv_id":"2511.13777","title":"Hashpower allocation in Pay-per-Share blockchain mining pools","abstract":"Mining blocks in a blockchain using the \\textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block. A common risk mitigation strategy is to join a mining pool, which combines the computing resources of multiple miners to provide a more stable income. This article examines a Pay-per-Share (PPS) reward system, where the pool manager can adjust both the share difficulty and the management fee. Using a simplified wealth model for miners, we explore how miners should allocate their computing resources among different mining pools, considering the trade-off between risk transfer to the manager and management fees.","short_abstract":"Mining blocks in a blockchain using the \\textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block. A common risk mitigation strategy is to join a mining pool, which combines the c...","url_abs":"https://arxiv.org/abs/2511.13777","url_pdf":"https://arxiv.org/pdf/2511.13777v1","authors":"[\"Pierre-Olivier Goffard\",\"Hansjoerg Albrecher\",\"Jean-Pierre Fouque\"]","published":"2025-11-15T13:42:59Z","proceeding":"cs.CR","tasks":"[\"cs.CR\",\"math.OC\",\"math.PR\"]","methods":"[]","has_code":false}