Introduction
Staking is a popular method that allows crypto holders to earn passive income by locking up their tokens to support the operation and security of a blockchain network. This blog post is a comprehensive guide on how to stake tokens on Aleo, pioneering zero-knowledge blockchain, by utilizing the privacy-preserving Leo Wallet. We'll also answer some of the most commonly asked questions about Aleo staking, ensuring you have all the information you need to get started.
What is Aleo?
Aleo is a new Layer 1 blockchain that utilizes zero-knowledge proofs to cryptographically guarantee privacy. It is the first blockchain of its kind and will enable many new use cases by not publicly sharing the details of every transaction. Aleo’s consensus mechanism is Proof of Succinct Work, which is a combination of proof of stake and proof of work. It allows any participant to stake credits to help secure the protocol, called Validators, while having other contributors to ensure that the chain is operating correctly, called Provers.
How to Stake Aleo: Use the Leo Wallet in These 8 Steps
Staking Aleo with the Leo Wallet is a simple and straightforward process. Just follow these eight steps to start earning rewards:
- Download and install the Leo Wallet on your desktop browser from the official website.
- Create a new wallet or import an existing one.
- Deposit Aleo tokens into your wallet.
- Click on Aleo tokens.
- Click on 'Stake Aleo.'
- Enter the amount of Aleo you wish to stake. Review the transaction details and confirm the stake.
- Your Aleo tokens are now staked, and you will start earning Aleo staking rewards!
Running a Validator
Aleo holders may want to run their own Aleo validator but should be aware there are a few significant requirements to do so, such as a minimum deposit of 1,000,000 Aleo Credits and an intensive hardware setup. Aleo has a dedicated Discord channel for those interested in learning more.
FAQ
What is the minimum deposit required to become an Aleo Validator?
For solo staking, the minimum deposit required is 1,000,000 Aleo Credits, which is the amount required to run a validator node on the Aleo network. However, with the Leo Wallet, there is a minimum amount of only 10 Aleo Credit required for staking.
What are the rewards for staking (what is the Aleo APY)?
The rewards for staking Aleo are yet to be determined by the official Aleo team. Stay tuned for updates!
Are there hardware or software requirements?
The only software requirement for staking Aleo with the Leo Wallet is to have the wallet installed on your desktop browser.
Are there many ways to stake?
While the easiest way to stake Aleo is through the Leo Wallet, you can also stake directly through the command line.
Can I stake directly as a Validator?
Yes, you can stake directly yourself as a validator. However, there is a 1,000,000 token minimum stake requirement to become a validator. You must also set up your own validator infrastructure, both hardware and software. You may refer to Aleo’s dedicated Discord channel for Aleo Validators on how to run a validator.
How do I pick between Validators?
When choosing a validator, consider factors such as team trust, validator reliability, wallet quality and safety, security, customer service, and fees.
Conclusion
Staking Aleo is a great way to earn rewards while supporting the network. The Leo Wallet makes the process easy and accessible, with a minimum deposit of only 10 Aleo Credits. Follow the steps outlined in this guide to start staking Aleo today.
DISCLAIMER: Staking is currently in beta and only available to select users for testing purposes at the moment. Please wait until Mainnet for public availability.
