This article and comparison testing was done by Loka Mining, and the views, opinions, and data here do not represent those of NiceHash, this is a copy of the information made public by Loka Mining.

Bitcoin mining is a highly competitive endeavor where every cent counts. Therefore, selecting the right mining pool is essential for miners aiming to maintain a competitive edge. Many believe that all mining pools pay out the same amount of bitcoin, but this is not the case, and it is challenging to verify without actual tests.

To provide clarity on this matter, Loka Mining conducted a rigorous test to compare the payouts of different mining pools. The experiment was designed to ensure fairness and accuracy, using identical equipment under controlled conditions, and fixed interval pool rotations.

We will now detail the methodology of the test and then present the results.

Methodology

We began testing with three of the most popular mining pools: F2Pool, Nicehash, and Luxor. While we plan to expand our evaluation to include several more pools in the future, we chose to start with these three due to their widespread popularity among our hosting customers.

We used three identical Avalon 1246 83T machines, rotating them between the three pools over a period of six days, with each machine spending two full days mining on each pool. To eliminate environmental variables, all machines operated in the same room and location.

• Pools Tested: F2Pool, Luxor, and Nicehash.
• Equipment Used: Three identical Avalon 1246 83T.
• Rotation: Each machine was rotated between different mining pools every two days.
• Duration: The testing period spanned six days in total.
• Environment: All machines operated in the same room and location to eliminate environmental variables.
• Fees: We found the pool's net reward (meaning pool fees are deducted) and added mining pool fees on top of that to find the gross reward.

Results

The results of our test reveal significant differences between several mining pool variables. Let’s go through each variable and explain its importance.

The most critical variable to consider is the Average Daily Net Reward per PH. This figure indicates how much bitcoin you, as a mining pool user, actually receive from the mining pool for your valuable hashrate. As shown in the chart below, Nicehash provided the highest net reward per PH at 0.00076 BTC, compared to F2Pool’s 0.00074843 BTC and Luxor’s 0.00071132 BTC. These numbers demonstrate notable differences in miners’ earning potential, with Nicehash paying 6.8% more for our hashrate than Luxor and 1.5% more than F2Pool.

Interestingly, the chart above also reveals significant fee differences between mining pools. For instance, F2Pool slightly outperformed Nicehash in terms of gross reward, but fell behind in net payouts due to its substantial 4% fee, compared to Nicehash's 2% fee. Luxor, with a 2.5% fee, is relatively competitive.

While the net reward is the most crucial variable for most miners, the gross reward also holds importance. Larger miners can negotiate fee discounts at mining pools, leading to roughly equivalent fees among all mining pools. The gross reward indicates which mining pools are most efficient in converting their users’ hashrate into actual BTC. We see that F2Pool and Nicehash provided the highest gross rewards.

The table above summarizes our results and reveals another interesting difference among pools. As shown, the different pools scored differently in the Average Accepted Hashrate metric. Remember, we used 83 TH/s machines for this test. On average, F2Pool accepted the most hashrate at 82.73 TH/s, followed by Nicehash at 81.33 TH/s, and Luxor at 78.41 TH/s. This explains most of the payout differences, as Nicehash’s 3.7% higher accepted hashrate compared to Luxor results in more hashrate being processed and, consequently, higher payouts.

Overall, Nicehash scored the best in this test, providing the highest payouts for miners.

Why could there be differences in payouts?

NiceHash is not a mining pool per se, as they don’t liquidate hashrate. Instead, they operate as a hashrate marketplace, facilitating the purchase and sale of hashrate between independent buyers and sellers. When you use NiceHash, your hashrate is effectively purchased by a buyer on the NiceHash marketplace and then sent to another mining pool to be liquidated into bitcoin.

Historically, hashrate has been traded at a premium on the NiceHash spot market, meaning buyers are willing to pay more for it than mining pools who are liquidating this hashrate. We recommend our users take advantage of this market discrepancy by selling their hashrate to the highest bidder, which currently is NiceHash.

Conventional mining pools, like Luxor and F2Pool, pay their users based on a mathematical formula called Full Pay Per Share (FPPS). This formula calculates the expected value of hashrate, also known as hashprice, based on several verifiable factors. However, despite their adherence to this formula, there have been slight payment differences. While most mining pools pay approximately the same rewards, NiceHash pays significantly higher due to its ability to resell hashrate at a premium on its marketplace. Also, we noticed differences in the accepted hashrate between these three pools, however more such controlled studies need to be conducted of more than the top 5 pools, and perhaps increase the number of machines, as well as model variations.

Conclusion

Based on our controlled test, Nicehash emerged as the most lucrative mining pool option. However, it’s important to consider other factors such as pool fees, reliability, user experience, and ecosystem when making a decision.

Although Luxor fell behind the other two pools in this test, we still appreciate Luxor due to its robust ecosystem of various products that can benefit miners. Luxor provides firmware and offers different derivative products that can help miners hedge and access capital.

However, if you purely want the most competitive mining pool solution in terms of maximizing revenue, we recommend NiceHash based on this test. Mining is such a cost-competitive endeavor that a few percentage points difference in revenue can have massive profitability implications.

By continuously evaluating mining pool performance, miners can optimize their strategies and ensure they get the best possible returns on their investment. We will continue to monitor these, along with several other mining pools. Once a quarter, Loka Mining will conduct such mining pool payout tests and we will publish the results.