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The Evolution of Bitcoin Mining Pool Rewards: Fixed & Upfront Payoutshashrateindex.com/blog/the-evolution-of-bitcoin-mining-pool-rewards-fixed-upfront-payouts/
127 sats \ 3 comments \ @standardcrypto 29 Apr bitcoin
Miners, is this good? Would anyone switch to the luxor pool based on this offering?
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0 sats \ 2 replies \ @k00b 29 Apr
I hope not. This kind of thing is incredibly centralizing:
Since 2023, Luxor’s Fixed Payouts have allowed miners to lock in a future BTC-denominated hashprice, regardless of spot market conditions. This eliminates the operational uncertainty introduced by hashprice variance and enables miners to model future cash flows with greater confidence.
Upfront Payouts took this one step further in 2024 by providing miners with immediate, non-dilutive capital in exchange for a fixed commitment to deliver hashrate over time. 
Both payout structures extend out to twelve months, allowing miners to hedge network difficulty and transaction fee volatility, by selling their future hashrate at a guaranteed hashprice. Settlement occurs through daily mining activity on Luxor Pool.
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33 sats \ 1 reply \ @standardcrypto OP 29 Apr
Why is it any more centralizing than any other thype of pool?
If it enables miners to more easily derisk their operations from price and hashrate fluctuations, they can concentrate on what they do best
MINE BLOCKS FOR CHEAP
and grow hashrate faster. Which is decentralizing.
What'm I missing?
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0 sats \ 0 replies \ @k00b 29 Apr
I could be totally off my rocker but ...
Creating a pool like this is very expensive and few other pools will be able to operate this way. This type of hashrate insurance is also very attractive to miners so they'll be disproportionately attracted to the pool.
If Luxor starts censoring, are miners going to abandon this predictability which is so desirable? One, adversarial, way to view this is that Luxor is bribing miners so that they can control more block templates.
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