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How are rewards distributed?
We use a combination of PROP and PPLNS(24h).
PROP + PPLNS(24h)
Your total sum of points for a block is measured from block to block (PROP), unless the time between those blocks was less then 24 hours. In that case it uses the sum of points from the 24 hours window ending at the time the block was found (PPLNS24h).
Under the current pool size (>1day block rewards) we believe that PROP is the most fair method, as each farmer gets rewarded proportional exactly to each point he contributed on the current block, and no points are discarded (as can happen under PPLNS). The PROP method in combination with instant pay-out means that both large and small farmers obtain a proportionally equal reward.
As we experienced first hand during blocks 3 and 4, a too small time window between blocks can however results in not all farmers delivering enough partials to properly proof their space. To counter this, we decided to switch to this unqiue combination of PROP and PPLNS.
We'll be monitoring the situation which pay-out system works best going forward, whilst including our farmer community in the decision process whenever we can.