A notable method achieving auditability and accommodating small payouts is highlighted through the use of bolt12, which leverages the capabilities of the Lightning Network (LN). The aspect of privacy, while a fundamental concern, presents a contentious issue when considering the use of LN due to the ongoing debate about its efficacy in preserving anonymity.

Further examination of Cashu as an alternative for enhancing privacy in mining payouts reveals significant drawbacks. Firstly, Cashu's custodial nature is identified as a major downside. This characteristic not only detracts from the autonomy of the users by placing their assets under the management of a third party but also introduces potential security risks. Secondly, the vulnerability of mining pools to regulatory actions becomes pronounced with the adoption of Cashu. This susceptibility stems from regulatory bodies' potential to impose restrictions or demand compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Such regulatory interventions could complicate operations and pose legal challenges for mining pools opting to use Cashu, thereby affecting the overall feasibility and attractiveness of this payment method in the context of mining payouts.