ALEO (ALEO) will force Staking to continue undermining the cryptocurrency

Aleeo, a network that worked exclusively according to the work test model (POW), announced that as of August 1, 2025 it will implement a hybrid proof of participation test (POS) and work test, forcing the miners to perform tokens takes takes to participate in mining.

This mining hybrid model will require that participants’ wallets contain a certain amount of alley tokens to receive pool payments. “Before August 1, if your account does not have enough hall to support the complete operation of the hash rate, the system will automatically notify you: ‘The current amount is supported by an effective hash rate of X GH’,” said Whalepool, the first pool that will implement this change in the protocol in its infrastructure.

According to the improvement proposal approved by the governance of LEO, migration to a hybrid model seeks to adjust the network participation requirements.

This characteristic is programmatic, with a gradual increase in participation [staking] required for a period of two years after the activation of this ARC. The objective of this ARC is to align the incentives of validators with the general health of the network and gradually adjust the economic requirements as the mature network ».

ARC-46: Staking in the presentation of puzzle solutions.

The following graphic exposes the incremental staking requirements to which Aleeo miners will face:

The mandatory staff to continue mine represents a turning point for network users. Until now, Aleeo mining depended exclusively on Powwhich allowed any participant with sufficient computational power to contribute to block validation.

This new model could limit the participation of those with restricted economic resources and from those who differ ideologically from the new incentive model, for deviating from the original purpose of the network. On the other hand, it could favor the entry of new validators not so familiar with the work test.

This change also raises questions about the balance between accessibility and network safety. While the staking could deter Malicious actors by increasing the cost of an attack, it could also contribute to centralize mining in the hands of those who possess greater amounts of tokens. The Aleeo community has already begun to discuss the implications of this transition.

For a wireless mining, This change implants negative expectations for your daily operations: «Please correct me if I’m wrong but this seems like a mechanic to avoid so much daily liquidation of your tokens. I sell 50% of Bitcoin weekly and keep the remaining aleo as a reserve. However, I will go to 75% because I don’t think Layout lasts with this change, ”he said.

Indeed, Aleeo governance confirmed that this measures seeks to limit liquidations:

The sincere answer is that some participants sell their liver credits won after being rewarded, and it is known that some groups facilitate the sale of wireless credits after they have been distributed. If the participants maintained their rewards won, they would have adequate tokens to start participating in Proof of Succinct Work with this new proposal.

ARC-46: Staking in the presentation of puzzle solutions.

For another miner, this measure only increases the economic barrier to cryptoactive mining.

The proposal document, however, mentions some security and privacy improvements that this hybrid model will implement in the protocol. For example, It will help to avoid Sybil attacks by making it expensive to create multiple malicious identities. It will also improve security by demanding a gradual increase in staking in two years. Finally, “it will promote the economic growth of the network with a transparent schedule that avoids sudden economic impacts.”

As Cryptonoticias reported, Iceriver recently launched the ASIC AE3 to mine aleo. This raised the price of cryptocurrency by 30% in just one day and four hours, although the historical trend of the price is negative.