Aleo announced the mainnet genesis block, but did not announce it. The mainnet launch is all guesswork. Why is this operation? The project team openly backstabbed early supporters and locked up the testnet incentives for a year, which attracted a lot of criticism. Who holds the chips? Will the leaders run away first?
With the birth of the Aleo mainnet block on September 5, controversy surrounding the Aleo project has been heard everywhere. The official Tai Chi-style work style has left everyone scratching their heads. Although miners are questioning it verbally, they have already taken practical actions to increase the total network computing power to 300 billion. The main goal has come. Next, I will answer the above questions one by one.
Is the mainnet online? Why is there no official announcement?
As of September 10, Aleo’s official Twitter account still remains at the announcement of the incentive plan released on September 5, and there is no new announcement on the DC channel. This has caused many miners to speculate whether it is the main network now? Will there be a reversal? Are the coins currently mined real coins?
1. What is certain is that we are now on the mainnet, because the official announcement said that the mainnet genesis block has been generated.
2. There may be a reversal. I guess the official reason for not making an official announcement is that they are worried about a major bug in the network. Since it is not clear that it is the main network, if there is a problem, it can be repaired normally, which will not have a big negative impact on the project. Once the network runs smoothly for a few weeks, it may be officially announced. If a major bug occurs, the previous data may be cleared.
3. There is a certain chance that the coins mined currently are not real coins. There are two situations here. The first one is that the network runs smoothly and is currently the main network. In this case, the coins mined from any block are the same, regardless of the official announcement of the starting block height. The coins mined now are real coins. The second one is that things are not going well, the official algorithm is modified or hard forked, then the coins mined now do not count.
Why backstab early supporters?
On September 4, the official released an incentive plan, which mentioned that all pre-mainnet incentive points will be locked for one year, including testnet points, engineer application development rewards, hacker vulnerability rewards, Aleo ambassadors' coins, VC big shots' coins, etc. As soon as the news came out, the hanging hearts finally died. If someone follows the project in 2021, they will have to wait for 5 years to get the coins. By then, the price of the coin is still unknown. It is indeed a big pit. Now it depends on whether the official will have additional explanations later.
In fact, this operation of the Aleo team is also expected. In the previous analysis, I mentioned that although the current market is not ideal, this is the best opportunity in the near future. How to stabilize the price of the currency and prevent it from collapsing under the less than ideal market conditions? The only way is to lock the position. This operation has the following three main benefits:
1. Stabilize the price of coins: By locking up positions and reducing the market circulation, the price of coins can be stabilized to a certain extent. When the selling pressure is reduced, it is relatively easier for the price to remain stable or rise.
2. Promote long-term investment: The lock-up mechanism forces early participants to make long-term investments and also encourages them to continue to participate in community activities and governance.
3. Enhance market confidence: For new miners, the lock-up mechanism ensures that everyone starts from the same starting line; for secondary market investors, this is also the project's commitment to long-term development, which can increase credibility and enhance the long-term value of tokens.
Who holds the chips? Will the leader run away first?
In the Aleo network, there are three essential roles:
Validator: Verify transactions and maintain network security, requiring a stake of 10 million points.
Prover: A miner who generates zero-knowledge proofs and uses graphics cards to provide computing power.
Staker: Stakers support validators by staking tokens and receive rewards, requiring at least 10,000 points.
Currently, there are 16 validators in the entire network, which means that at least 160 million points are required. Due to the lock-up mechanism, early participants do not have any coins, so where are the validators from? I believe everyone is very clear, only the project party. Therefore, the early circulating tokens, in addition to the output of miners' mining, also include the output of the project party's verification nodes. When the early participants were locked up, the official itself held a large number of chips and took the opportunity to ship. This is also the main point of the community's fud.
In general, as a top-level project, Aleo has now trapped a large number of people. Currently, the project team has not made a clear statement to either the early participants or the miners who roll up the computing power, which has caused dissatisfaction in the community. In addition to the influence of the current market, we should not have too high expectations for the performance of the token on the exchange.
The question is, why didn’t the Aleo mainnet launch replicate the grand occasion of Filecoin? Why are the narratives and the launch cycle so similar, but the results are so messy?
The final reason is that the liquidity of this round of market is exhausted, but each project still holds the expectation of seeking a sword by carving a boat. L2 wanted to imitate the last round of Polkadot KUSUMA and other cross-chain surges of dozens of times, but the result was that ZK was cut when it went online; GameFi Summer wanted to imitate the last round of DeFi summer, but Matr1x backstabbed early players when it went online; Aleo Mining is also the same, and it is difficult to reproduce Filecoin's path to breaking the circle. In contrast, in the last bull market, everything made money, and who made more and more money. So far in this round, no one has said that fortunately I didn’t choose a certain track, so I didn’t lose money, because everyone is losing money, and the competition is who loses less and less. Of course, the summer in the northern hemisphere is now the winter in the cryptocurrency circle, and the loneliness in the southern hemisphere controls the cryptocurrency circle. Let’s see if the winter will reverse.
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