Aleo Delegated Staking
What are the motivations behind Pondo?
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
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.
Delegators
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.
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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.
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