Dear NiceHash buyers!

Lately, we have detected an increased number of disconnects by target pools. This is decreasing miners' profits. To protect our miners we have decided to double the extra rewards on the DaggerHashimoto algorithm!

What are Extra rewards and how to avoid them?

One of the parameters that you can track in your hash-power order details is called “Extra rewards”. 

To understand the logic behind extra rewards, you must have a good understanding of how NiceHash works. In short, as a buyer, you rent hash power (computing power) from miners (sellers) connected to NiceHash and you pay for this service in Bitcoins. NiceHash serves as a broker and sends hash results to your selected pool. Pools are responsible for paying out the end result of rented hash power - actual coins.

It is very important for us that miners get paid in full for their valid work (running mining rigs) and that the buyers only pay for valid work that has been submitted to the pool (just as if the buyers were using their own mining rigs). Sometimes buyer's pools are generating lots of work restarts or disconnects. This might happen because coins have a very low difficulty or because multi-pools are switching jobs very fast and don’t have an efficient job switching algorithm. In some cases, this is also a result of some custom private pools with incorrect settings. Excessive work restarts or disconnects reduce the efficiency of miners.

We have addressed this issue by rewarding providers (miners = sellers) with extra shares or “extra rewards” paid by buyers when fast work restarts occur. In essence, if your pool is generating a lot of work restarts or disconnects we have to penalize you to protect the miners. The extra rewards serve as compensation for miners to replace the lost income during the work restarts. Extra reward for miners is like an “extra penalty” for buyers. 

To avoid paying for extra rewards make sure your pool is responsive and configured correctly! If you are paying for extra rewards, this is a good indication that something is wrong with the pool. Pool operators should follow our guidelines that are available here! Contact the pool operator or switch to some fully compatible pool. With properly optimized pools, buyers don’t pay for any extra rewards!

If you have any issues with our hash-power marketplace, do not hesitate to contact us. 

Thank you for using our service!

Your NiceHash team.