This is a quick explanation of how Litecoin and Dogecoin merge mining payouts work on HyperDonkey.com’s P2Pool node:
When you’re merge mining Litecoin with Dogecoin, it is possible to solve a block on only the lower difficulty DOGE blockchain, or on both the higher difficulty LTC blockchain AND the lower difficulty DOGE blockchain together — simultaneously.
The difficulty of each merge mined blockchain is solved independently by the same proof of work.
For example, HyperDonkey.com’s P2Pool merge mining payouts work like this:
• If the P2Pool network mines a Litecoin block, you receive a payout of LTC only from the blockchain.
• If our P2Pool node mines a Litecoin block, you receive both a payout of LTC from the blockchain AND a payout of DOGE from HyperDonkey.com’s node for the merge mined Dogecoin block.
• If our P2Pool node mines a Dogecoin block, you receive a payout of DOGE only from HyperDonkey.com’s node.
So, there are 3 different ways to get paid when you’re merge mining Litecoin and Dogecoin simultaneously!