Aleo Delegated Staking
What are the motivations behind Pondo?
Last updated
What are the motivations behind Pondo?
Last updated
The Aleo blockchain relies on a network of validators: infrastructure service providers who secure the network through AleoBFT, a Proof of Stake based consensus mechanism that leverages the latest state-of-the-art consensus research: Bullshark.
Validators verify and confirm blocks of transactions and agree on state of the chain. They receive rewards and fees for their work securing the network. These rewards are proportional to a specific amount of Aleo tokens bonded to them. They are called staking rewards.
Because a minimum of 10M Aleo Credits is required to become a validator, a mechanism natively exists on the chain to allow users not meeting the criteria to earn staking rewards: they can delegate their tokens by bonding them to a validator, in exchange for a commission. These users are called delegators. Both delegators and validators are referred to as stakers.
While delegation solves a major pain about Staking, it does not bring a liquid, scalabe, private staking mechanism on Aleo. Pondo aims at solving these pain points.