This initiative is designed to decentralize block template generation, diverging from the traditional centralized mining pools. By implementing such a system, Radpool aims to scale down miner payouts while maintaining a decentralized structure. The framework allows MSPs to independently construct block templates and run stratum servers (either version 1 or 2), empowering miners with the flexibility to build their own templates. Through the utilization of Free Open Source Software (FOSS) community implementations, Radpool ensures optionality within its node implementation for MSPs.

The platform incorporates a payout mechanism that leverages Discreet Log Contracts (DLCs) to compensate miners based on their hash rate at predetermined intervals. This system ensures that MSPs, who fund these contracts, settle them using FROST threshold signatures and earn returns from the coinbase transactions of pooled blocks through a Pay-Per-Last-N-Shares (PPLNS) scheme. This model not only mitigates the risk associated with variance in block discovery but also guarantees payouts for miners by preventing MSPs from withdrawing unilaterally. This setup promotes stability and reliability within the Radpool ecosystem, offering an attractive proposition for anyone capable of funding DLC contracts to operate an MSP and potentially earn yields by attracting miners.

Radpool strategically positions itself between centralized pools and peer-to-peer (p2p) pools, creating an open syndicate of MSPs that function similarly to centralized pools but with the added benefits of decentralization. This design encourages the growth of the network by reducing variance for miners and increasing yield opportunities for MSPs, thereby fostering a competitive market for pool fees and encouraging network expansion through a classic network effect.

Key features of Radpool include the decentralization of block template construction, payment to miners via futures contracts built on DLCs, the use of Radpool as an oracle for attestation generation by MSPs, transparent share accounting, and the facilitation of unilateral exits for both miners and MSPs. These innovations make transitioning to Radpool seamless for miners accustomed to centralized pools, eliminating the need for additional services on their part.

Currently, efforts are focused on developing the FROST Federation, which underpins the federation of MSPs, along with the early stages of implementing DLC contracts using Rust-DLC. The community is invited to join the discussion on Discord to explore potential vulnerabilities and contribute to the project's development.