Decentralized Coordination Free Mining Pool

Payment Cut-Through

See https://utxos.org/uses/miningpools/

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These slides show how payment load can be reduced, and also showcase different strategies which may have different impacts on variance reduction.

Group By Key & Single Output

= different miner's keys

Blocks mined in a given window, sequentially, color by owner:

Blocks mined in a given window, group by owner:

UTXOs required in a block

legend:

Last Block Out gets Paid

T1 = 11 blocks, 2 hours

T2 = 14 blocks, 2 hours

If we're running the pool based on a time window (e.g., 2 hours), we can share amounts only to the most recently participating block(s) to no longer be in the time window.

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The split sent between the current miner and the out-of-window blocks should be more closely evaluated, the numbers given are for example only.

1/14 reward

1/11 reward

Cross Channel Trees Swaps,

reduce on-chain outputs

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Idea:

Take a series of tree payouts to N participants of varying amounts.

Make each leaf node of the tree a channel among participants, selected to maximize overlap.

Swap among channels to reduce UTXOs to minimal per-user.

Pessimistically O(# blocks mined * Miners), Optimistically O(#Miners) utxos.

Never custodial!

Next Slide: Visualization

Cross Channel Trees Swaps,

reduce on-chain outputs

Block N pool payout

Block N+5 pool payout

Block N+12 pool payout

Rebalance step 1

Rebalance step 2

Rebalance step 3

Rebalance step 4