> ## Documentation Index
> Fetch the complete documentation index at: https://docs.basedmining.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# The Hybrid Model

> How BasedMining pays out: 1 BTC to the finder + remainder shared among contributors. 0% fee.

BasedMining is a **hybrid lottery pool**. Every block the pool finds pays in two parts:

<CardGroup cols={2}>
  <Card title="Finder reward — 1 BTC" icon="trophy">
    Goes to the miner whose share solved the block. Paid by the Bitcoin network itself, chain-enforced, instant.
  </Card>

  <Card title="Pool remainder — ~2.1+ BTC + fees" icon="users">
    Split proportionally among every miner who contributed to that round. Sent on-chain to your address. Automatic.
  </Card>
</CardGroup>

This is unusual. Most pools are either "winner-take-all" (solo) or "everyone shares everything smoothly" (PPS / FPPS). We do both at once — and we don't take a fee on either side.

## The split, in numbers

Current Bitcoin block subsidy is **3.125 BTC**, plus whatever transaction fees the block carries.

| Recipient                                                     | Amount                |
| ------------------------------------------------------------- | --------------------- |
| **Finder** (the miner who solved the block)                   | **1.00 BTC** fixed    |
| **All contributors** to the round (proportional to work done) | \~2.125 BTC + tx fees |
| **Pool operator fee**                                         | **0**                 |

## How the 1 BTC finder reward works

When you connect your rig to BasedMining, our pool sends you a "coinbase template"—the blueprint for the transaction that pays out the block reward.

Unlike traditional pools that collect everything and pay you later, our template has the 1 BTC Finder Reward already hardcoded to point directly to your wallet (the address you use as your username). The remainder of the reward is directed to the pool.

### The Power of Consensus

When you find a valid block, the Bitcoin network itself enforces the payout. The 1 BTC lands in your wallet on-chain, at the exact moment the block is confirmed.

* No routing through the pool.
* No custodial holding.
* No "operator approval" required.

### Don't Trust, Verify

The pool operator literally cannot reroute your reward. Changing the destination address would change the transaction data, which would invalidate the block you just found.

You don't have to take our word for it. Anyone with a Bitcoin node can capture the stratum job, decode the coinbase template, and see that the 1 BTC output matches their own address byte-for-byte. This is sovereign mining.

## How the remainder gets shared

Once the pool finds a block, the remainder lands in the pool wallet onchain. The operator runs the round through the payout simulator, which calculates each contributor's share based on:

```text theme={null}
your share = (your accepted-share difficulty during the round)
             ────────────────────────────────────────────────  × pool remainder
             (total accepted-share difficulty during the round)
```

This is **PPLNS-by-diff** (pay-per-last-N-shares, weighted by difficulty). The harder your shares, the bigger your slice.

Once verified, each contributor receives their share directly to the Bitcoin address they registered. No claiming. No portal. No login.

For onchain participants (Hashpower NFT holders), the equivalent flow sends cbBTC on Base to the address that minted the NFT — same proportional math, different settlement chain.

## Rounds

A *round* is the time between two found blocks.

* **Round opens** the moment the previous block is approved.
* **Every accepted share** during the open round counts toward that round's distribution.
* **Round closes** when the next block is found.
* **Next round opens** immediately.

Shares from a previous round don't carry forward. The model rewards work done in the most recent window.

## Why this design

<AccordionGroup>
  <Accordion title="It keeps the lottery feel alive">
    A solo miner pointing a single Bitaxe at a traditional pool will never see anything dramatic happen — at best, a tiny payout every block. With our hybrid model, that same Bitaxe has a real (if small) shot at 1 BTC. That's a life-changing outcome from a single device, and it's exactly the magic that brought any of us to Bitcoin mining in the first place.
  </Accordion>

  <Accordion title="It still pays steady">
    The proportional split of the remainder means you get *something* from every block the pool finds, not just the ones you happen to solve. Steady accrual + lottery upside.
  </Accordion>

  <Accordion title="It's trustless on the finder side">
    The 1 BTC finder reward is enforced by Bitcoin itself. The operator can't take it, can't delay it, can't redirect it. This is the strongest possible payout guarantee in mining.
  </Accordion>

  <Accordion title="It scales across audiences">
    The same model works whether you contributed with hardware, a Hashpower NFT, or (soon) an x402-paid agent rental. Hashpower is hashpower.
  </Accordion>
</AccordionGroup>

## What gets paid in what currency

| Contributor type     | Paid in   | Where                                    |
| -------------------- | --------- | ---------------------------------------- |
| Hardware miner       | **BTC**   | Direct to your stratum BTC address       |
| Hashpower NFT holder | **cbBTC** | On Base, to your minting wallet          |
| Agent (when live)    | **cbBTC** | On Base, to your x402 settlement address |

Finder rewards (when applicable) always pay BTC on the Bitcoin network, regardless of contributor type.

## Reading next

* [**Pool Comparison**](/pool/comparison) — How this stacks up vs. solo, PPS, FPPS, cloud mining.
* [**For Miners → Payouts**](/miners/payouts) — Your share, your payouts, your address.
* [**For Onchain Users → Rewards**](/onchain/rewards) — How NFT holders get paid in cbBTC.