## Aleo Mining Rewards Re-adjusted: Hardware Cost Optimization Is the Key

The Aleo team has made an important consensus mechanism adjustment during the process of launching the mainnet, directly affecting the income expectations of all participants. According to the latest protocol update, the Coinbase reward coefficient for the simple proof of work (PoSW) has increased from 1/2 to 2/3, which means that mining rewards based on PoSW have increased by approximately 16.6% compared to before. This change reflects the project's emphasis on computational power supply during the initial network launch and creates a more favorable profit window for early participants.

## The Cost of Choosing Mining Hardware

When profit opportunities emerge in the market, competition for computational power inevitably intensifies. In this context, the success or failure of participating in Aleo mining often depends on hardware investment efficiency.

**Cost-effectiveness rather than high configuration should be the primary consideration.** Mining ultimately depends on the output of effective hash power. If two hardware setups provide the same hash rate, but one costs three to four times more due to higher-end configurations, then even with better specifications, its return on investment will be significantly less ideal. This is especially important as Aleo is about to transition to ASIC-dominated mining—device value retention and second-hand liquidity will become hidden factors influencing future profits.

Considering cost, value retention, and liquidity together, hardware selection should focus on equipment that has been circulating in the market for about three years. These devices have three advantages: first, market premiums have already been absorbed, resulting in relatively low prices that significantly reduce initial mining costs; second, there is a wide variety of models and many suppliers capable of quick delivery; third, second-hand circulation is large, allowing for rapid market absorption even when selling in bulk later, whereas high-end equipment often faces difficulties in liquidation.

Regarding specific selection standards for core components such as CPU, GPU, and memory, as well as details like motherboards, hard drives, power supplies, and cases, combining these standards can save participants at least 40% of hardware costs.

## Solo Mining or Joining a Mining Pool: It Depends on the Person

This decision depends on the resource endowment of the participant.

**For participants with abundant GPU resources**, such as those who have accumulated previous-generation blockchain mining equipment or purchased hundreds or thousands of GPUs, independent operation can be considered. This mode is equivalent to running your hardware cluster as a private mining pool. The benefits are that blocks can be settled on the same day they are mined, liquidity is high, and control is autonomous. The prerequisite is to find a top-tier mining software provider to ensure stable technical support.

**For small-scale participants with some technical background**, evaluating the feasibility of solo mining is an option. These participants usually have hardware maintenance and basic programming skills, with dozens to hundreds of GPUs. However, solo operation demands higher storage device requirements; it is recommended to configure dual SSDs to improve system redundancy. The disadvantage is the risk of luck-based fluctuations—if you find a block, you get the entire reward; if not, zero income, which involves a certain "gambling" element. Additionally, before the final code freeze, Aleo mining configurations are still being adjusted, so solo miners need to invest more effort in real-time optimization.

**For participants lacking technical expertise**, purchasing hosted hardware through reliable mining vendors is the most practical choice. This approach eliminates operational complexity; participants only need to check daily earnings after the incentive testnet or mainnet launch.

## The Algorithm Advantage of Mining Software Determines Long-term Profits

Aleo uses GPU mining architecture, meaning that the algorithm optimization level of different mining software directly impacts mining efficiency and reward stability.

In previous three-phase tests, the official community established a prover pools channel, aggregating performance data from major pools or mining tools such as f2pool, Hpool, Aleopool, Damo, etc. However, with the latest official algorithm adjustments and ongoing optimization before code freeze, the previous test data has lost its reference value. This change creates a new starting line for all participants, shifting the focus to how quickly each team can optimize for the new algorithm.

According to a community meeting on May 8, the new testnet Beta version will be launched soon, and different mining tools will undergo a new round of practical benchmarking. This stage may see dark horse players emerging, and the entire industry is closely watching this evolution.

## Key Recommendations to Seize the Window

As Aleo mining rewards increase, computational power supply in the market will inevitably grow rapidly, further diluting early mining advantages. To achieve the desired profit expectations, the key is to deploy early, precisely control costs, and maintain calm judgment—avoiding falling for marketing hype or becoming the last participant to buy at a high price.