Mining5 min read

Pool vs Solo Mining

Should you join a mining pool or mine solo? Understand the trade-offs and make an informed decision.

PoolSoloStrategy

When mining Ethereum Classic, you can choose between joining a mining pool or mining solo. Each approach has distinct tradeoffs that depend on your hashrate and preferences.

Understanding the Difference

Pool Mining

In pool mining, many miners combine their hashpower to find blocks as a group. When the pool finds a block, the reward is distributed among participants based on their contributed shares.

Solo Mining

In solo mining, you mine independently and receive the full block reward when you find a block. However, finding a block may take a very long time depending on your hashrate relative to the network.

Comparison

FactorPool MiningSolo Mining
Payout frequencyRegular (daily/weekly)Sporadic (when you find a block)
Payout sizeSmaller, proportional sharesFull block reward
VarianceLowVery high
FeesPool fee (typically 0.5-2%)No fees
Technical setupEasierRequires full node

Pool Mining in Detail

How It Works

  1. You connect your miner to the pool's server
  2. Pool assigns you work (hashes to try)
  3. You submit valid “shares” proving your work
  4. When the pool finds a block, rewards distribute by shares
  5. You receive payouts based on your contribution

Advantages

  • Consistent income: Regular payouts instead of waiting for blocks
  • Lower variance: Smooths out the randomness of mining
  • No full node needed: Pool handles blockchain sync
  • Easier setup: Just point miner at pool address
  • Support: Most pools offer dashboards and monitoring

Disadvantages

  • Fees: Pools take 0.5-2% of earnings
  • Trust: Must trust pool to pay fairly
  • Centralization: Large pools can concentrate hashpower
  • Minimum payouts: May need to accumulate before withdrawal

Choosing a Pool

Key factors to evaluate:

  • Fee structure: Lower is better, typically 0.5-2%
  • Payout scheme: PPS, PPLNS, or proportional
  • Minimum payout: Lower minimums for smaller miners
  • Server locations: Choose one near you
  • Uptime: Reliable pools maximize your earning time
  • Size: Consider supporting smaller pools for decentralization

Payout Schemes Explained

  • PPS (Pay Per Share): Fixed payment per valid share, pool absorbs variance
  • PPLNS (Pay Per Last N Shares): Payment based on recent shares when block found
  • Proportional: Reward split by shares submitted since last block

Solo Mining in Detail

How It Works

  1. Run a full ETC node (Core-Geth or similar)
  2. Configure your miner to connect to your node
  3. Your hardware searches for valid blocks
  4. If you find a block, you receive the full reward

Advantages

  • No fees: Keep 100% of block rewards
  • Full block reward: Currently ~2 ETC plus transaction fees (decreases over time per emission schedule)
  • No trust required: You verify everything yourself
  • Supports decentralization: Running your own node helps the network
  • Privacy: No pool tracking your activity

Disadvantages

  • High variance: Long periods with no income possible
  • Full node requirement: Need storage, bandwidth, and sync time
  • Hashrate requirement: Need significant power to find blocks regularly
  • Technical complexity: More setup and maintenance

When to Mine Solo

Solo mining may make sense if:

  • You have very significant hashpower (multiple GH/s)
  • You can afford months without finding a block
  • You prioritize avoiding fees over consistency
  • You want to contribute to network decentralization
  • You enjoy the technical challenge

Realistic Expectations

For most individual miners, pool mining is the practical choice. Consider:

  • With 500 MH/s, finding a solo block could take months to years
  • Network difficulty fluctuates, affecting block times
  • Pool fees of 1% are a small cost for consistent income
  • Regular payouts help cover electricity costs

Block Time Calculator

Estimate your expected time between solo blocks:

  1. Check current network hashrate (etc-network.info)
  2. Calculate your percentage: (Your hashrate / Network hashrate) × 100
  3. Average block time is ~13 seconds
  4. Expected blocks per day: Your % × (86400 / 13)

Example: With 500 MH/s on a 200 TH/s network:

  • Your share: 0.00025%
  • Expected blocks/day: 0.00025 × 6646 ≈ 0.0017
  • Average days per block: ~600 days

Hybrid Approaches

Some miners use hybrid strategies:

  • Solo pools: Pool software but you keep full block reward when you find one
  • Split mining: Majority to pool, small percentage solo for lottery chance
  • Pool hopping: Move between pools based on luck or fees

Recommendation

For most miners, pool mining is the best choice:

  • Consistent income helps planning and covers costs
  • Low barrier to entry
  • Pool fees are minimal compared to variance cost of solo

Consider solo mining only if you have substantial hashpower (multiple GH/s) and can handle extended periods without rewards.

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