Pool Weight

Understand key crypto terminology for Portal, including essential terms and concepts that enhance your engagement in the cryptocurrency space.

Pool weight refers to the relative contribution of a participant in a mining pool. Mining pools allow multiple miners to combine their resources to increase the chances of successfully mining a block. Instead of each miner working independently, they collaborate and share the rewards based on their contributions.The pool weight is calculated based on the hash power or computing power contributed by a miner compared to the total hash power of the entire pool. A higher pool weight means a greater share of the rewards when a block is mined.For example, if a miner contributes 20% of the total hash power in a pool, their pool weight is 20%. When the pool earns rewards, this miner would receive 20% of those rewards. This system encourages participation, as miners with more power can earn more, while smaller miners still benefit from the collective efforts of the group.Understanding pool weight helps participants gauge their potential earnings and encourages equitable distribution of rewards based on effort and investment.

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