In today's digital world, privacy and security have become one of the most concerning issues for users and developers. As an emerging blockchain platform, Aleo aims to build a privacy-protecting network and achieves this goal through its core token - Aleo Credits. This article will take an in-depth look at what Aleo Points do, how they are distributed, and their importance within the network’s ecosystem.
Aleo Points Features
Aleo points play multiple roles in the Aleo network, mainly including the following aspects:
Granting access rights: Aleo points are a user’s passport to access block space and computing resources on the network. Users need to pay points to submit transactions and process them, which not only ensures the operating efficiency of the network, but also provides reasonable compensation for service providers.
Create an incentive mechanism: In the Aleo network, the protocol rewards provers and verifiers in the form of points. These rewards not only ensure the security of the protocol, but also incentivize participants to build a strong decentralized network. Through this incentive mechanism, the Aleo network can attract more participants, thereby enhancing its security and stability.
Enable staking
Aleo points can also be staked to validators to assist with block production and provide network security. Stakeholders will receive network rewards proportional to the number of points they have locked, which not only increases user participation but also enhances the overall security of the network.
Promote governance: With the launch of the mainnet, Aleo point holders will be able to participate in decentralized governance and vote on protocol upgrades and changes. This governance model ensures that the voice of the community is fully reflected in network development and enhances users' sense of participation and belonging.
How Aleo points are distributed: After the mainnet is launched, the initial supply of Aleo points is 1.5 billion, which will be distributed according to the following proportions:
35% to early backers: These backers provided valuable resources and support in Aleo’s early stages.
25% is used for public distribution and subsidies: This part of the points will be used to attract more users and developers to participate.
16% to the company and the Aleo Foundation: these points will support the company’s operations and development.
16% to employees and project contributors: to reward those who contribute to the Aleo ecosystem.
8% for strategic partners: These points will be used to incentivize cooperation with other businesses and organizations.
It’s worth noting that the way these credits are allocated may change over time, there are two main ways: natural and algorithmic. With some contributors potentially selling their points to cover fees, this means distributions will naturally move away from the original holders. From an algorithmic perspective, staking and proof rewards will increase the circulating supply of points.
The future of Aleo points
Over time, it is expected that by ten years more than 50% of Aleo points will be distributed to the public. This means that the community will gradually become more decentralized from early supporters, which is crucial to building a healthy decentralized ecosystem.
Build a better network with Aleo: All in all, the success of the Aleo network relies on the joint efforts of its community participants. Stakers lock up credit to secure the network, provers generate proofs to solve computational puzzles, and validators participate in consensus and confirm transactions. Aleo Points play a key role in this process, incentivizing participation from all actors and creating a powerful flywheel effect for the network’s utility.
Aleo points are not only a tool for users and developers to obtain verification and information services in the network, but also a driving force for the entire ecosystem to move forward. As the Aleo network gradually matures, there will be more opportunities and challenges waiting for participants in the future. For those looking for innovation and value in the blockchain space, Aleo Points will be a worthy focus.
In this ecosystem full of potential, the development of Aleo points will continue to attract more attention and lead the future of privacy protection technology.