Chia Pooling is officially here — what does that mean for you?

As of today, the Chia Project announced the official release of version 1.2.0 of its pooling protocol. With this release, a new plot format has arrived — the so-called portable plots.

July 8, 2021

How are portable and non-portable plots different from each other?

Non-portable plots were all created before the pooling update, which launched on July 7th, 2021. These plots cannot participate in pools but can continue to be farmed by single farmers.

With the release of the new protocol, Chia enthusiasts can now produce portable plots. They utilize smart contracts, giving them additional functionality. Farmers can assign these plots to a pool, move them from one pool to another, or continue farming them solo if they prefer.

In short, portable plots can do everything that non-portable plots could, but not the other way around. From now on, we expect everyone to produce portable plots, as they satisfy the demand of both single farmers and users who participate in Chia pools.

When buying plots on the internet, you should be careful which version you purchase.

You can already buy the next generation of plots in our online shop!

Why is Pooling so crucial to the Chia Network?

As the Chia network’s net space exploded over the last months from 100 petabytes at launch to over 30 exabytes today, this update comes as a vast upgrade to the whole Chia network. Increasing net space made it difficult for small-scale farmers to run successful operations, as the Chia rewards became increasingly unlikely. In addition, the coin price dropped from $1,500 per coin to around $300, presenting another challenge to farmers who are looking to turn their farm profitable.

Because of these challenges, this update is a real game-changer for small-scale farmers. As the total size of the network grows, it becomes increasingly challenging to earn Chia as a solo farmer. By joining a pool, you will become part of an extensive network that owns a much larger piece of the pie — meaning the chances of winning will be higher. Your rewards in a pool will be more constant and more predictable than single farming. However, they will also be smaller, as you have to share the harvested coins with other pool members.

With Chias’ new consensus algorithm, there are 32 times as many reward events per day as Bitcoin. With 4608 chances to win two Chia coins (XCH) each day, even small farmers in pools will be able to gain rewards within a reasonable time frame.

The Chia network also makes sure that this pooling update does not lead to centralization — making decentralization one of the focus points of this update.

One exemplary aspect showing the focus on decentralization is the confirmation of blocks to the blockchain. Even when a winning farmer uses a pool, they confirm the block — not the pool. The decentralization benefits of this policy are obvious. To maximize the attractiveness and stability of this method, all transaction fees generated by a block go to the farmer who found it and not to the pool.

Good to know: Existing plots will continue to work. If you wish to use an existing farm to join a pool, you can re-plot one plot at a time while leaving the old ones running.

If you have a large enough farm that you get frequent rewards, we recommend not joining a pool at all.

Conclusion

The pooling protocol has several essential features that aim to make Chia the most decentralized cryptocurrency globally. Here are the essential facts summarized

  1. With the new version of plots, you can switch between pools and even go back to self-farming whenever you want.
  2. Pools can allow farmers to join and leave whenever they choose while competing with other pools based on fees and service.
  3. Participation does not require security deposits or minimum balances. A user can provide plots to a pool and start receiving payouts almost immediately.
  4. When it comes to rewards, 87,5% go to the pool, and the remaining 12,5% go to the farmer.

If you are looking to join the lively discussions about Chia, check out our Discord server. We are currently giving away 250 plots to our community, so check it out and win some free plots! Also, subscribe to our YouTube channel to always stay up to date on Chia.