As time goes by after the mainnet, the total POS output is always higher than PoSW, and the rate of decline is slower than that of PoSW. Of course, it is normal. After all, the consensus of the chain is POS, and PoSW is just an incidental incentive mechanism, bound to the hardware service provider, to serve the subsequent ecological entrustment agent calculation.
Judging from this output, if the price is right, the income is actually very considerable. Although the threshold for becoming a validator is 1 million points, the threshold conditions are actually quite high. If one point is calculated at 10 US dollars, it would be 10 million US dollars. But as long as the benefits are considerable, there are many ways. Therefore, we feel that the competition in Staking will be more intense than that of PoSW. There are already 58 nodes at present, and there will be more after it is launched on the main network, as long as the price is right.
So where will Aleo’s staking go in the future? Let’s take a look at Ethereum’s Staking for comparison:
As you can see from the picture above, there are nearly 900,000 validators on Ethereum, and the total number of Staking Ethereum is more than 28 million. According to the current price, it is about more than 64 billion US dollars.
The reason why Ethereum has so many validators is that the threshold is relatively low. 32 Ethereums are enough. Compared with Aleo, the threshold for Aleo is still very high.
As you can see from the picture above, there are four modes of Staking in Ethereum:
- SOLO: Provide hardware and operation and maintenance by yourself, while staking 32 Ethereum;
- SAAS: You only need to provide 32 Ethereums to find a service provider to cooperate with. This is compared to those who do not understand technology and do not have hardware.
- POOL: Compared with the first two, this threshold is relatively low. Retail investors can pledge at will, and the threshold for the pool will also be lowered. We guess that this method should also have a relatively low threshold for Aleo. Just like 1to, the 1 million points are not actually held by oneself, but are crowdfunded through the retail investors in the pool.
- CTEX: The threshold is relatively low. Everyone should be able to see similar products and services in major law firms.
So in general, we guess that Aleo’s staking mode should be similar to Ethereum’s staking, but there should be three types, because the first SOLO method has 1 million points, and the threshold for letting yourself bear this alone is too high, and it must be too high. There will be, but the number won’t be huge.
Let’s take a look at the current ranking of Ethereum Staking. As you can see from the picture above, the number of validators (Validators) in the first place is several times that of the following ones, but the APR (annualized return) is not much different. That is to say, the APR does not have much to do with the number of validators or the amount of pledges.
Aleo’s staking should be similar, but if the base is large, the income will definitely be high. After all, in addition to the chain’s incentive rewards, these validator nodes can also receive user staking service fees.
But we still don’t know how this block’s ½ coinbase reward + 5% POS reward is distributed to validators. According to the logic of PoSW, whoever has greater computing power will definitely receive higher rewards.
The picture above shows the staking data of the first-place Lido. You can see that the total staking amount has reached more than 20 billion US dollars, which is very exaggerated!
Judging from the information of the validators who have participated in the Aleo test network, we have not yet seen the top few validators on Ethereum. We don’t know whether Aleo will also participate after it is launched on the main network. If you participate, I believe it may create strong competitiveness for existing validators and validators who may enter the market in the future.
We believe that after Aleo is on the mainnet in the future, as long as the price is right and the ecosystem prospers and develops, Aleo’s own “Lido” will also be born in Aleo’s staking market.
