PPS fee lowered to 3%
2011-11-11 14:22 UTC
The pool found some lucky blocks in the last few days, so I decided to lower the fee from 5% to just 3%. You can still set a higher donation manually, if you wish, by going to your account page.
I guess many people don't want to give our pool a try because they believe we have the highest fee among Litecoin pools. If this is you, I urge you to reconsider. Why? Because a PPS fee cannot be compared to a proportional fee. Take, for example, BTCGuild, which used to be the second largest proportional Bitcoin pool. They had a 0% fee, but when they decided to go PPS they had to introduce a 5% fee. Another clear example of this is deepbit.net: they charge 3% for proportional, 10% for PPS.
The reason for the higher fee is simple: miners in a PPS pool not only get steady rewards, but are also immune to bad luck and cheating. You cannot be cheated by the pool operator, and you cannot be cheated by pool hoppers. The pool itself, however, is still subject to bad luck and to cheating by its own members, who could withhold found blocks. Proportional pools (including PPLNS pools) don't worry too much about these problems, because they never give away more than they earn.