Pool payout directly to exchange address

[oxfardk]

That was useful info for myself.

so for myself because it's very a useful for bitcoiners

[1714672964]

1714672964

[1714672964]

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[Sonny]

Bitcoins mined by the pool are generated by the pool. Shares of the block reward are sent by the pool to miners just like any other transaction.

Is it save to say that these warnings/statement by the Exhanges are ment for solo miners and pools them selves?

No, Eligius and P2pool pay participants using a different way than most other pools, that technically behaves like solo mining. The payouts are performed in the coinbase transaction in blocks they mine.

Exactly, they put the miners' address directly in the coinbase tx.

I don't really understand why people still use the exchange deposit addresses to collect P2Pool payment when the exchanges explicit ask you not to do so.

[silversurfer1958]

But why can't you mine to a deposit address, OK, they say you can't, but why not.

[jonnybravo0311]

I'm in the process of setting up my first miningrig. Hardware is done, software and accounts are almost done. As some howto's state, i'd like to set the mining pools of multiple coins to deposit my share directly to a coin exchange, as this enables an autosell option.

I've registered at BTC-e, VirCurEx and Cryptsy. However, when i generate an address, every exchange seems to say direct mining to the exchange is not supported. Could someone clairify this for me? Some direct quotes are provided underneath:

BTC-E:
"We do not support generated transactions from pools like Eligius, P2Pool etc."

VirCurEx:
"Usage of addresses
DO NOT use Vircurex addresses for mining purposes. We cannot credit coins generated (instead of being sent)."

Cryptsy:
"Notice: Do NOT mine directly directly to your Cryptsy deposit address."

They mean they cannot accept newly generated coins directly.  For example, when you mine on p2pool, the coinbase transaction that generates the new coins from the block reward pays your address directly with a portion of those new 25BTC.  Most exchanges don't like this - their APIs can't handle it.  Other pools (like kano, BTC Guild, etc) wait until the coins have confirmed and pay you then.  These types of payments are something the exchanges can accept.

Basically:

If you are getting newly generated coins directly as part of the block reward for your coin, exchanges will not work.