I don't understand this logic.
With PPS you get paid for every share, independent of the discovery of a block. You might even have provided a share that found a block, it doesn't matter, you still get paid the same per each share. If you leave the PPS pool, then no more payments are made, independent if the PPS pool finds a block or not.
If you switch to a PPLNS, then basically the same applies, but you only get paid for your last N shares if the pool finds a block. If your pool doesn't find a block in a year, you will be paid 0 in a PPLNS, whereas with a PPS you will be paid for every single share you made that year.
Basically, in the long term most types of pool reward distribution end up being similar, you just have the option to get paid uniformly a small amount every time (PPS), get 0 or the full block amount when you found one block(Solo), or PPLNS(and others) which are in between those two extremes.
In PPS you could offer up 100 shares about the same as everyone else in your pool...you're up to 1000 shares. Big guy come in, dumps another thousand on you, moments before you find a block. He can do that, he's got more power than you lot combined. He hasn't been there, mining with you, he hasn't stuck it out, he just dumped hash and is suddenly getting half your block reward.
Now, try doing that in PPLNS. You've been there for hours, you've put in 1000 shares for the last 5 epochs, Billy Big Bollocks comes along and dumps his 1k shares...and you find a block...but Billy's share is only what he contributed in that block. Not the last 5. You win.
It was designed to keep power consistent when big miners used to switch rapidly between pools and it works. Unfortunately it might work a little too well, given the current state of mining distribution between pools - there's a definite economic disincentive to switch pools when you've been piling in the hashes.
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Maybe we are talking about different things, but with PPS you get paid for each share, and if a block is found, nothing changes, the pool keeps it.
You seem to be implying that in PPS you get paid when a block is found based on the number of shares you sent until that block was found, which is not the case. You get paid in every share, immediately, even if no block is found.
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No, that's something different again. In a system where you get paid regardless of if a block is found that's the pool incentivising you to stick around without using PPLNS or some other system beyond PPS. PPS is paid per share, when the block is found the reward is split based on the amount of work provided, which is why large miners could quickly switch pools and gain disproportionate rewards.
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Yeah, I'm using nicehash definition of PPS, but they are a hash rental company really, not a pool, so there might be a difference.
Yeah, if a pool pays you for your shares only after a block is found, then yes, that could be abused as you described. But from memory I think pools usually credit you for your shares immediately, so in theory you could get paid in PPS without the pool finding any block.
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Yeah, that's it there - with nicehash you're selling your work to a buyer, who pays you per share. When you're on a pool directly, you need the blocks to come in
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