Auction based Rewards Distribution Method in Pool Mining
Keyang Liu, Yukio Ohsawa · 2019
Proof of Work(PoW) plays an essential role in Blockchain field. In PoW, some limited resources, like computation power, are consumed for making consensus. As a result, the total amount of these resources determines the security of the Blockchain. Blockchain systems that adopt PoW usually distribute rewards among participants according to blocks they found. In the real world, miners can join some pools to share the variance of these kind of rewards they can get timely. In this work, we will compare different reward distribution mechanisms in a long-term condition. The result shows that all existed mechanisms cannot guarantee miners continuously mining in a pool. For solving this problem, we propose an auctionbased method to improve the motivation of miners and the stability of the pool.