Radpool's model involves a network of Mining Service Providers (MSPs) that decentralizes block template generation, offering a solution to combat centralization in the mining sector. This system empowers MSPs to independently create block templates and manage stratum servers, providing miners with the autonomy to construct their own templates if desired. Utilizing Free Open Source Software (FOSS) for node implementation ensures flexibility and choice for MSPs within the Radpool framework.

Radpool introduces a unique payout mechanism that employs Discreet Log Contracts (DLCs) to remunerate miners based on their hash rate contributions at predetermined intervals. This arrangement allows MSPs to fund these contracts, which are then settled using FROST threshold signatures. The model ensures reliable payouts to miners by incorporating safeguards against unilateral withdrawals by MSPs, thereby maintaining stability and trust within the ecosystem. By offering a yield-generating opportunity for entities capable of funding DLC contracts to function as MSPs, Radpool creates a competitive environment that benefits both miners and MSPs.

Positioned between centralized and peer-to-peer (p2p) pools, Radpool leverages its design to reduce variance for miners and enhance yield potentials for MSPs, contributing to a healthy competitive landscape for pool fees. This encourages network growth through a classic network effect, presenting an attractive proposition for participants across the mining ecosystem. Key features facilitating this include the decentralization of block template construction, transparent share accounting, and mechanisms enabling unilateral exits for both miners and MSPs, ensuring seamless integration for users familiar with centralized mining operations.

Currently, the development focus is on the FROST Federation, which serves as the foundation for the MSP federation, alongside the initial stages of implementing DLC contracts using Rust-DLC. The community engagement via Discord aims to foster collaboration, inviting discussions on potential vulnerabilities and contributions to further refine the Radpool project.