Bitcoin Mining Pool Comparison: Fees, Payouts, and Size

Mining Pool Market Share Overview

Bitcoin mining pools aggregate proof-of-work hashrate from individual miners to smooth out block reward variance. As of early 2026, the Bitcoin network operates at roughly 900 EH/s total hashrate, with the top two pools controlling over half of all blocks mined. Choosing the right mining pool affects your revenue, payout frequency, and exposure to counterparty risk.

The following table ranks the largest Bitcoin mining pools by estimated hashrate share, based on blocks mined over recent periods. Hashrate shares fluctuate daily, so treat these as approximate snapshots.

Foundry USA alone accounts for roughly 37% of all blocks mined, making it the single largest pool by a wide margin. Combined with AntPool at 14%, these two pools produce over half of all Bitcoin blocks: a concentration level that raises legitimate questions about network centralization.

Payout Methods Explained

How a pool distributes block rewards and transaction fees to miners is one of the most important factors in pool selection. Each payout model carries different risk and reward profiles.

FPPS dominates the industry because it eliminates revenue variance for miners. The pool guarantees a fixed payout per share regardless of whether the pool actually finds blocks. This predictability comes at a cost: FPPS pools charge higher fees (typically 2-4%) to compensate for the variance risk they absorb. After the Bitcoin halving reduced the block subsidy to 3.125 BTC, transaction fees now represent a larger percentage of total block revenue, making the distinction between FPPS (estimated tx fees) and PPS+ (actual tx fees) more meaningful.

PPLNS is cheaper but introduces luck variance. If the pool goes through a dry spell without finding blocks, miners receive nothing during that period. This makes PPLNS more suitable for miners with large hashrate who can tolerate short-term variability.

Stratum V2 and Decentralization

Stratum V2 is a next-generation mining protocol that gives miners the ability to construct their own block templates rather than accepting whatever the pool operator builds. This is a significant improvement for Bitcoin's censorship resistance: if miners build their own blocks, no single pool operator can unilaterally decide which transactions to include or exclude.

Adoption remains limited. As of early 2026, only a handful of pools support Stratum V2 in production:

• Braiins Pool co-developed the Stratum V2 specification and offers full support
• OCEAN supports miner-built block templates via its DATUM protocol, which goes further than standard SV2 by requiring miners to run their own full node
• Luxor has Stratum V2 infrastructure ready
• DEMAND launched in 2025 with full SV2 support
• Foundry USA and AntPool have announced testing but have not shipped production support

Bitcoin Core v30 (released October 2025) added experimental SV2 support, which should accelerate adoption. Roughly 15-20% of network hashrate currently uses Stratum V2 in some form. For miners concerned about centralization and censorship resistance, SV2 support should be a key factor in pool selection.

Lightning Network Payouts

Two pools currently support payouts via the Lightning Network, which eliminates the minimum payout threshold problem for smaller miners:

• Braiins Pool was the first pool to offer Lightning payouts (February 2024) and processes over 1,000 daily Lightning payouts with no minimum and no fees
• OCEAN supports Lightning payouts via BOLT12, its non-custodial payout model paying miners directly from the coinbase transaction

Lightning payouts are particularly valuable for home miners and smaller operations. A miner with 100 TH/s might need weeks to accumulate the 0.005 BTC minimum payout that some on-chain pools require. With Lightning, every satoshi earned can be withdrawn immediately. Use our mining calculator to estimate daily earnings at your hashrate level.

Pool Transparency and Trust

Mining pools hold custody of block rewards until they distribute payouts. This creates counterparty risk: if a pool operator is dishonest or goes insolvent, miners lose accumulated earnings. Several factors differentiate pools on trust and transparency:

Custody model:

• OCEAN is the only non-custodial pool at scale, paying miners directly via the coinbase transaction
• All other major pools are custodial: they collect block rewards and distribute payouts on a schedule

Audit and compliance:

• Luxor holds SOC 2 Type 2 certification
• SpiderPool holds SOC 2 Type 1 certification
• Foundry USA operates under DCG with institutional compliance standards and KYC requirements
• MARA Pool (Marathon Digital) is publicly traded on NASDAQ, providing financial transparency through SEC filings

Transaction selection transparency:

• OCEAN publishes its transaction selection criteria openly; miners using DATUM build their own blocks
• F2Pool censored OFAC-sanctioned transactions in 2023, then reversed course after community backlash
• MARA Pool initially censored OFAC transactions in 2021 before reversing the policy
• Most pools do not publish their transaction selection policies

How to Choose a Mining Pool

The right pool depends on your scale, location, and priorities. Here is a practical decision framework:

For industrial and institutional miners (1+ EH/s): Foundry USA dominates this segment with tiered pricing and institutional-grade infrastructure. Luxor is the main US-based alternative with published fees and SOC 2 compliance. AntPool offers competitive FPPS rates for large operations, especially those running Bitmain hardware.

For mid-scale operations (10-1000 PH/s): AntPool, F2Pool, and ViaBTC offer straightforward FPPS or PPS+ models with low minimum payouts and no KYC requirements. Braiins Pool is competitive at 2% FPPS or 0% PPLNS for miners willing to accept variance. Compare fees carefully: the difference between 2% and 4% FPPS adds up to significant revenue over a year.

For home miners and small operations (<10 PH/s): Braiins Pool with Lightning payouts eliminates the minimum payout problem entirely. OCEAN offers non-custodial payouts and the strongest decentralization properties. Both support Stratum V2 for miners who want to build their own block templates.

For miners who prioritize decentralization: OCEAN and Braiins Pool are the clear choices, both supporting Stratum V2 and offering transparent operations. Supporting smaller pools also helps distribute hashrate away from the Foundry/AntPool duopoly, strengthening Bitcoin's proof-of-work security model.

Centralization Risks

Bitcoin's security model depends on no single entity controlling a majority of hashrate. The current landscape raises concerns: Foundry USA and AntPool together control roughly 51% of blocks mined. While pool operators do not own the hashrate (miners can switch pools at any time), this concentration gives two organizations significant influence over transaction selection and block construction.

The FPPS payout model itself contributes to centralization. Larger pools can offer lower FPPS fees because they find blocks more consistently, reducing the variance premium they need to charge. Smaller pools cannot compete on FPPS pricing, which pushes hashrate toward the largest operators. Stratum V2 adoption and non-custodial models like OCEAN's TIDES represent the most promising countermeasures, allowing miners to maintain revenue predictability while distributing block construction authority. For more on the economics of mining and difficulty adjustment, see our Bitcoin mining economics research article.

Frequently Asked Questions

What is the largest Bitcoin mining pool?

Foundry USA is the largest Bitcoin mining pool, controlling approximately 37% of the network's total hashrate as of early 2026. It is a subsidiary of Digital Currency Group and operates as an institutional-only pool with a KYC-gated onboarding process. AntPool (Bitmain) is the second largest at roughly 14%.

What is the difference between FPPS and PPLNS?

FPPS (Full Pay Per Share) guarantees a fixed payout per valid share submitted, including an estimated transaction fee component. The pool absorbs all block-finding variance. PPLNS (Pay Per Last N Shares) only pays when the pool actually finds a block, distributing rewards proportionally among recent contributors. FPPS provides stable income but charges higher fees (2-4%). PPLNS has lower fees (0-2%) but introduces luck-based variance in payouts.

Can I mine Bitcoin with a single ASIC at home?

Yes, but profitability depends on your electricity cost and the current difficulty level. A single modern ASIC (such as an Antminer S21 at ~200 TH/s) earns a small fraction of BTC per day. Joining a pool with Lightning payouts (Braiins Pool or OCEAN) eliminates minimum payout thresholds, so you receive earnings daily regardless of amount. Use our mining calculator to estimate revenue based on your specific hardware and electricity rate.

What is Stratum V2 and why does it matter?

Stratum V2 is a mining communication protocol that allows miners to construct their own block templates instead of blindly accepting templates from the pool operator. This matters for Bitcoin's censorship resistance: with Stratum V1 (used by most pools), the pool operator decides which transactions go into blocks. With SV2, that power shifts to individual miners. Braiins Pool, OCEAN (via DATUM), and Luxor currently support SV2.

Are mining pool payouts taxable?

In most jurisdictions, mining pool payouts are taxable income at their fair market value when received. In the United States, mined Bitcoin is treated as ordinary income by the IRS. The cost basis for future capital gains calculations is set at the value when the BTC was received. Consult a tax professional in your jurisdiction, and consider using our crypto tax calculator to estimate obligations.

What happens to mining pool revenue after a halving?

Each Bitcoin halving cuts the block subsidy in half. After the April 2024 halving, the subsidy dropped from 6.25 BTC to 3.125 BTC per block. This makes transaction fees a proportionally larger share of total block revenue, and it increases the importance of the FPPS vs. PPS+ distinction: PPS+ passes through actual transaction fees from found blocks, while FPPS estimates them. During periods of high fee activity (like Ordinals or Runes inscriptions), PPS+ can outperform FPPS.

Is it better to mine solo or join a pool?

For virtually all miners, joining a pool is the rational choice. Solo mining a block with even 1 PH/s of hashrate would take years on average at current difficulty levels (~145 T). Pools smooth out this variance by combining hashrate and distributing rewards proportionally. Solo mining only makes sense for very large operations willing to accept extreme variance or as a lottery-style gamble.

This tool is for informational purposes only and does not constitute financial advice. Mining pool data is approximate and based on publicly available information as of early 2026. Hashrate shares, fees, and payout policies change frequently. Always verify current terms on each pool's official website before committing hashrate.