How do mining pools actually distribute payments to miners?

Share-based distribution

Pools track "shares"—proof of work submissions proportional to computing power. When the pool finds a block, rewards are split based on each miner's share count during that period. A miner contributing 1% of pool power receives roughly 1% of rewards, minus the pool's fee.

Payment methods and thresholds

Pools use different payment schemes (PPS, PPLNS, PROP, etc.). The names vary, but the practical difference: some pay more consistently, others pay more when the pool gets lucky. Pools set minimum payout thresholds (often $0.50–$5.00) to reduce transaction costs. Your earnings sit in the pool account until you reach the threshold, then automatic payouts occur daily or weekly.

Payouts to your wallet

Once you receive coins, the pool's responsibility ends. Withdrawal happens to whatever wallet address you configured. Verify this address is correct before starting—sending to a wrong address is unrecoverable. Most pools show recent payouts and balances in the dashboard.

Timing and fees

Payouts appear in your wallet within minutes to hours, but blockchain confirmation takes longer. Pool fees (1–3%) are already deducted from your share before payment reaches you.