Bitcoin Forum

OK, here's my idea.

1. You setup the pool as usual... (poclbm, etc.)
2. You are paid based on what returns you generate.
3. The pool sells some collective mining contracts, I might allow a vote to be placed for the larger contract deals!
4. You're paid a little cut of the contract profits (proportionate to how much you mine) AND how much you mine!
5. Epic win :)

I have a nice VPS available, 2GB ram, etc.

Can someone explain exactly how a pool works in plain english? (Which maybe I can then convert to Python or something).

Furthermore, I might release the code open source... But only after a certain amount of donations have been recieved. (This is long term, after I actually have something)

umm what?

Really dude?

I thought it was pretty clear...

The pool profits by selling mining contracts, you get a cut of said profits. (based on how much you mine, of course!)

To make it even more clear;
1. You lend your processing power to this guy's pool while he can also redirect your miner.
2. He can then sell your power to private investors(2Ghash = 90$ a month or such).
3. He gets the money and gives you a cut for supplying him with the power.

Well, I am having a bit of a hard time having any faith in someone to run a pool who doesn't know how a pool works to start with and is asking outright on the forums.  It would seem to me that anyone capable of managing a pool properly would know where to go to get the information and be able to handle it themselves.

I'm not trying to be a dick, but coding a pool isn't a trivial process.  It's not a Herculean task by any means but it's not something you just whip out in a couple hours of coding if you want anything even marginally secure and usable.

You could always start with an open source pool:  https://github.com/jgarzik/pushpool

Thanks :) I think I can at least read C :P.

Just because he doesn't know about mining pools doesn't mean he can't code.

I'd be personally interested in this, but a couple of concerns:

1) If you're selling a mining contract, I don't see a way to be paid in BTC and come out ahead (or be an obvious loss to the other party) which leads me to

2) If you do what most mining contracts do and get paid in fiat currency, you now have to deal with what currency to pay in, how to pay out in fiat, and possibly taxes (both reporting for you and your pool-ers)


Anyway, with concerns addressed i'd still probably consider something like this.

my question is, when profits are directly connected to being able to sell contracts. and by definition a pool fluctuates. what happens when you sell a contract and some people leave the pool for a different one and you dont have the power to fulfill that contract? just seems like one less degree of control to the miners to me, and a poorly thought out one.

guy gets reimbursed based on pro-rata or wtv it is called (ie: 25% of mining contract left = 25% reimbursement.) His rates would be cheaper than others because it includes this risk.

or maybe this is "pooled contracts" that are resold for profit

Wouldn't this approach pay way less than regular pools since on top of regular fees this pool will also pay out to the renter?