PPS means Pay Per Share. Instead of waiting for your mining pool to find a Bitcoin block, the pool pays you for the valid work your miner submits. A pool share is proof that your ASIC is hashing correctly at the difficulty requested by the pool.

Think of PPS as turning expected mining revenue into a steady rate. Your ASIC submits accepted shares, and your balance increases even during a stretch when the pool finds fewer blocks than expected. That predictability is the main attraction.

The tradeoff is that block-luck risk moves from the miner to the pool. If the pool is unlucky, it still owes PPS miners, so it needs reserves or other liquidity and normally charges a fee. Foundry describes PPS base earnings as being built from accepted shares. Luxor explains FPPS as a model where the pool effectively purchases hashrate while absorbing short-term variance.

PPS and FPPS are not identical. FPPS extends the PPS idea by adding estimated transaction-fee revenue to the payout calculation.

At 7:42, the discussion turns directly to FPPS payout structure and later compares FPPS with PPLNS.

For miners comparing different pool structures, remember that payout method is a separate choice. New systems such as P2Poolv2 payout experiments may change how rewards are delivered without changing the basic idea that shares measure contributed work.

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