# pALEO Token ## ALEO Credits ALEO credits are ALEO blockchain native tokens, the rewards from the protocol comes from staking this token under the hood. [Learn more about ALEO Credits.](https://aleo.org/aleo-credits/) ## pALEO Token pALEO represent one's current share in the Pondo staked pool. If there's 1000 ALEO in the pool, 100 pALEO minted and you own one of them, then you are owed 1% of the ALEO pool, ie: 10 ALEO, whenever you want to withdraw. Those ALEO in the pool are calculated as the ALEO owned by the core protocol program minus those that are already claimed by some involved parties. ### Lifecycle Whenever you stake ALEO credits by pooling them in the core protocol, pALEO tokens are minted according to the new share of the pool you represent. On the contrary when some ALEO are withdrawn pALEO tokens are burned accordingly. As ALEO reward distribution progresses, pALEO token value increases proportionally to ALEO staking related inflation rate. This means that pALEO held passively during any period of time are equivalent to ALEO actively bonded to a validator. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.pondo.xyz/how-it-works/paleo-token.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.