Bitcoin mining pool fees and hashrate concentration shifts

The math of pool fee optimization

An Antminer S21 Pro earns $30,076 in gross revenue every year. At a 0.75% fee, an operator pays $225.57 annually to the pool. If the operator uses Antpool with a 2.5% fee, the cost is $751.90. The annual difference per machine is $526.33. For a 10-machine operation, the fee difference between Foundry USA and Antpool is $737. For a 50-machine operation, the difference is $3,686. Pool fee optimization is a high-leverage improvement because gross revenue is much thinner than in past years. Every percentage point in pool fees reduces take-home pay by that exact amount every day.

The decision to switch pools is immediately reversible. Hardware decisions happen once, and hosting decisions change rarely, but pool choice is an ongoing operational decision that affects net revenue. For an operator running 50 S21 Pro machines, the difference in annual fees between Foundry USA and Antpool is $3,686, which is more than enough to offset years of switching costs for the operation.

Payout structures and revenue variance

Operators must understand the difference between FPPS+, PPS, and PPLNS to manage cash flow. FPPS+ is the optimal payout structure because it pays for every share plus transaction fee income with no variance. Transaction fees in Bitcoin blocks grew as a significant portion of the total reward. In 2024, transaction fees occasionally exceeded the block subsidy. FPPS+ ensures that operators receive this transaction fee income proportionally.

PPS is a different structure that excludes transaction fee income from the payout. The pool retains all transaction fee income and uses it to subsidize operating costs. This means PPS yields are lower than FPPS+ during periods of high transaction fee activity. In periods of low activity, PPS and FPPS+ converge.

PPLNS creates variance because the payout is calculated based on the shares contributed in the window before each block is found. If a pool has a lucky streak, the per-share payout is higher. If a pool hits a dry spell, the per-share payout is lower. PPLNS and FPPS converge to the same expected value over long periods, but PPLNS adds short-term income volatility that most operators do not need.

Comparing the major mining pools

Foundry USA is the largest Bitcoin mining pool by hashrate and controls 28% to 35% of the global hashrate. It is a US-based, US-regulated pool founded by Digital Currency Group in 2020. The fee structure is 0-0.75% with an FPPS+ payout. Most individual operators qualify for the 0.75% tier. This fee is much lower than the 2.5% charged by Antpool or F2Pool. Concentration in a single pool is a concern for network decentralization.

Antpool is the second-largest pool with a 15% to 20% hashrate share. It is operated by Bitmain and integrates with Bitmain firmware. The pool address is the default in all Antminer configurations. The fee is 2.5% for FPPS or 2% for PPLNS. F2Pool is a veteran pool with 10% to 15% of the hashrate. It is a reputable choice for global operations, but its 2.5% PPS+ fee excludes transaction fee income. Braiins Pool is a smaller option with 2% to 4% of the hashrate. It provides Lightning Network payouts with no minimum threshold.

Will the massive hashrate concentration in a single pool eventually force a change in how miners view decentralization?

The risks of solo mining and hosting locks

Solo mining is not viable at any scale in 2026. The global network hashashrate is approximately 958 EH/s. A single machine with 234 TH/s has an expected time to find one block of approximately 78 years. Even 100 machines only reduce that expected time to 9 months. An operator with 100 machines faces months of operating costs with no income. Pools exist to smooth this variance into predictable daily payouts.

Pool selection involves checking if a hosting provider allows full pool flexibility. You should confirm your hosting contract allows full pool flexibility before you sign it. Some providers have commercial relationships with specific pools and try to lock clients in. This arrangement benefits the hosting company through affiliate fees or revenue sharing.

Directing machines to any pool is a basic right for all reputable hosting providers. If a contract restricts pool choice, an operator loses the ability to optimize fees. For a 10-machine fleet, losing the ability to switch from a 2.5% pool to a 0.75% pool results in a loss of $5,263 per year. Monitor your pool connection uptime on each machine monthly. Configure primary and backup pool addresses in your miner settings to prevent lost revenue during downtime.