Pools mining for each other (as proxy pools) is an alternative strategy to de-risk variance.
A portion of the pool's hashrate is forwarded to another pool, thereby de-risking the payout of that portion of the hashrate.
Proxying reduces variance at the cost of sovereignty.
Hashrate centralization via proxy pools points towards one thing and one thing only: miners and pools hate variance.
Miners want to avoid block reward variance so badly only a select few solo mine.
Pools want to avoid block reward variance so badly they mine for each other.
BitcoinAlchemist / James Pierog
npub1u8…xjcky
2024-09-16 13:06:07
Author Public Key
npub1u8r69esh5r7jt29nj9ufmz4yvuwp6cwl5xqp4e3d46vl8wla5smsexjckySeen on
wss://nos.lolPublished at
2024-09-16 13:06:07Event JSON
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"pubkey": "e1c7a2e617a0fd25a8b391789d8aa4671c1d61dfa1801ae62dae99f3bbfda437",
"created_at": 1726491967,
"kind": 1,
"tags": [],
"content": "Pools mining for each other (as proxy pools) is an alternative strategy to de-risk variance. \n\nA portion of the pool's hashrate is forwarded to another pool, thereby de-risking the payout of that portion of the hashrate.\n\nProxying reduces variance at the cost of sovereignty.\n\nHashrate centralization via proxy pools points towards one thing and one thing only: miners and pools hate variance.\n\nMiners want to avoid block reward variance so badly only a select few solo mine.\n\nPools want to avoid block reward variance so badly they mine for each other.",
"sig": "6b4908f15a26504abd586a387c047ddfb64fc2667d4b4cba010f8279afd6f899697e21d600883f939adedc7edf1256c716534342a2a587320fb47437a5374a6e"
}