- Steve Sokolowski

- Archived posts: 4559
- Joined: Aug 27, 2014
Re: Looking for more information about reduced hashrate miners
I think the main reasons that litecoinpool.org can offer 101% are that they do not have any regulatory expenses because they don't distribute US tax forms (or forms for whatever country they are located in,) and that they have the policy of pool "donations." I think you are underestimating how many people are willing to leave large balances behind and then they just forget about them. Here, they are paid out; there, they send E-Mails and then confiscate them. That could be 5% alone.
Merge-mining is not likely to be the difference. It's only responsible for about 1% of profits, since every pool, including both of these, does it.
After the confiscation policy, I think the next most likely issue is the "nBits" calculation error problem that I mentioned in the "status as of" post yesterday. Now that the problem has been corrected, our orphan rates should fall and the blocks we weren't submitting when we could submit them will be submitted, increasing instantaneous profitability. We won't know the full extent of that major bugfix for a month, when orphan rates have leveled off.
Merge-mining is not likely to be the difference. It's only responsible for about 1% of profits, since every pool, including both of these, does it.
After the confiscation policy, I think the next most likely issue is the "nBits" calculation error problem that I mentioned in the "status as of" post yesterday. Now that the problem has been corrected, our orphan rates should fall and the blocks we weren't submitting when we could submit them will be submitted, increasing instantaneous profitability. We won't know the full extent of that major bugfix for a month, when orphan rates have leveled off.