Payout Threshold

Payout Threshold is the minimum amount a participant must accumulate in a mining-pool balance before a payout can be processed. Until the balance reaches the configured threshold, the reward normally remains on the pool account.

Why Pools Use a Payout Threshold

If every small amount were sent as a separate blockchain transaction, the pool would have to process a large number of small payouts. A threshold allows the system to accumulate rewards and reduce the number of outgoing transactions.

For example, if the threshold is set to 0.01 coins, a balance of 0.006 coins would normally remain on the pool account. After additional rewards bring the balance to 0.01 coins, the pool can initiate a payout according to its rules.

What Determines the Actual Payout

• the accumulated balance;
• the configured payout threshold;
• automatic payout rules;
• transaction fees and payout conditions;
• network and pool availability.

The payout threshold does not determine mining profitability. It primarily affects when credited mining income is converted into an external transfer.

For cash-flow analysis, it is therefore useful to distinguish between accrued mining income, the pool balance, and funds actually received externally.