What is pool mining?
“In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to solving a block.”
A pool allows the miner to receive more frequently a payout. But compared to solomining he will not receive the full reward but a percentage of it, according to the mining work done by him during the round.
Pool mining is recommended for people, who want to see results more frequently.
In theory, over a longterm you will have the same payout in poolmining (often but smaller amount) as in solomining (not so often but bigger amount).
How to choose a pool?
You can usually find the available pools by googling, reading Bitcointalk or by asking around in Discord.
All pools have more or less the same website layout. But there are several aspects to consider when choosing a mining pool. I will list a few of them here…
Pool Hash Rate
This indicates, how often the pool will find a block (If for example the pool hash rate is 20% of the total Catalyst network, it will find most likely 20% of all blocks).
Beside this information, you can also estimate the amount of reward you will get per block (based on your mining power compared to the total pool hash rate).
Pools usually have the feature to donate some of the reward to the pool or the Catalyst developers. It is recommended to mine on a pool, which donates to the Catalyst fund to further support the development of the project.
Total Pool Fee
This percentage will be deducted from the total block reward and will be used, to pay for the payout transaction fees, to donate to developers and to support the pool owner.
Minimum Payment Threshold
The threshold indicates how much Catalyst you must earn on this pool before it will be paid out to your Catalyst wallet.
Make sure you choose a pool with an active poolowner or a good support. Who wouldnt get frustrated if the pool is suddenly down and there is no communication?
How long till I get paid out?
You are qualified for a reward, when you mined during the last round (round = time between two blocks) and your pool has found a block.
What is maturation?
Once the block is found, it will mature. This means the block will be verified by the Catalyst network.
You dont have to do anything, the maturation will happen automatically.
After your block has been found, it will be “locked”. It will be “unlocked” once 40 other blocks have been found by the Catalyst network. This ensures, that your block is valid and part of the Catalyst blockchain.
What happens after my block has matured?
Once the block is matured, the pool will split the reward between the miners of that round. Depending on your mining power, you will get your share of the reward accredited to your pending balance. Once your pending balance reaches the payment threshold, it will be paid out to your private Catalyst wallet.
TheGoldenSparrow, creator of Cat 7 Network.