Hashprice & PPS Valuation

What is Hashprice?

Hashprice measures how much revenue a unit of mining power generates per day. It is expressed as $/PH/day (dollars per petahash per day).

Hashprice depends on:

• BTC price — higher BTC price means more revenue per hash
• Network difficulty — higher difficulty means each hash is worth less
• Block subsidy — currently 3.125 BTC per block (post-2024 halving)
• Transaction fees — additional revenue from fees included in blocks

Why Hashprice Matters

Hashprice is the fundamental metric for:

• Valuing mining shares — each share's work can be priced in hashprice terms
• Comparing pool economics — standardized measure across different pools
• Assessing profitability — miners can compare hashprice against their electricity costs

PPS (Pay-Per-Share) Valuation

In a PPS model, each share has a deterministic value based on:

1. The share's difficulty (how much work it represents)
2. The current network difficulty (scaling factor)
3. The block reward (subsidy + fees)

Share Value = (share_difficulty × 2³²) / network_difficulty × block_reward

m1n3 uses this PPS valuation as the theoretical fair value for shares on the marketplace. Shares typically trade at a discount to PPS value because buyers must wait for block maturation (~16.5 hours).

Hashprice Trends

Hashprice tends to decline over time due to:

• Difficulty increases as more miners join the network
• Halving events every ~4 years that cut the block subsidy in half

However, BTC price appreciation can offset these effects. The Stats page on the dashboard tracks hashprice trends in real time.