On reward sharing in blockchain mining pools

B-Tier
Journal: Games and Economic Behavior
Year: 2022
Volume: 136
Issue: C
Pages: 274-298

Authors (3)

Can, Burak (Maastricht University) Leth Hougaard, Jens (not in RePEc) Pourpouneh, Mohsen (not in RePEc)

Score contribution per author:

0.673 = (α=2.02 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the reported shares in a pool instead of agents and introduces two new fairness criteria: absolute and relative redistribution. These criteria impose that the addition of a share to a round affects all previous shares of the round in the same way, either in absolute amount or in relative ratio. We characterize two large classes of reward sharing schemes corresponding to each of these fairness criteria in turn. We further show that the intersection of these classes brings about a generalization of the well-known proportional scheme, which in turn leads to a new characterization of the proportional scheme itself.

Technical Details

RePEc Handle
repec:eee:gamebe:v:136:y:2022:i:c:p:274-298
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25